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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Consol Energy (CEIX). CEIX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.47 right now. For comparison, its industry sports an average P/E of 8.24. Over the past year, CEIX's Forward P/E has been as high as 9.17 and as low as 5.26, with a median of 7.63.
Finally, investors will want to recognize that CEIX has a P/CF ratio of 5.43. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.62. Over the past 52 weeks, CEIX's P/CF has been as high as 6.19 and as low as 2.63, with a median of 3.82.
These are just a handful of the figures considered in Consol Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CEIX is an impressive value stock right now.
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Consol Energy Inc. (CEIX) : Free Stock Analysis Report