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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Edgewell Personal Care (EPC). EPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.86, while its industry has an average P/E of 21.05. Over the past year, EPC's Forward P/E has been as high as 14.03 and as low as 9.86, with a median of 12.55.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EPC has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.87.
Finally, investors should note that EPC has a P/CF ratio of 8.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EPC's P/CF compares to its industry's average P/CF of 15.10. Over the past year, EPC's P/CF has been as high as 10.23 and as low as 8.27, with a median of 9.40.
These are only a few of the key metrics included in Edgewell Personal Care's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EPC looks like an impressive value stock at the moment.
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Edgewell Personal Care Company (EPC) : Free Stock Analysis Report