In This Article:
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Funko (FNKO). FNKO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that FNKO has a P/B ratio of 3. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.55. Over the past year, FNKO's P/B has been as high as 3.27 and as low as 1.33, with a median of 2.30.
Finally, investors will want to recognize that FNKO has a P/CF ratio of 16.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 38.74. Over the past 52 weeks, FNKO's P/CF has been as high as 26.26 and as low as -8.67, with a median of 13.75.
These are only a few of the key metrics included in Funko'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, FNKO looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Funko, Inc. (FNKO) : Free Stock Analysis Report