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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
ENGIE - Sponsored ADR (ENGIY) is a stock many investors are watching right now. ENGIY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.21 right now. For comparison, its industry sports an average P/E of 14.44. Over the past year, ENGIY's Forward P/E has been as high as 10.21 and as low as 6.67, with a median of 8.75.
We should also highlight that ENGIY has a P/B ratio of 1.12. Investors use the P/B ratio to look at a stock's market value versus 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 2.22. ENGIY's P/B has been as high as 1.12 and as low as 0.87, with a median of 0.98, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ENGIE - Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, ENGIY sticks out at as one of the market's strongest value stocks.
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This article originally published on Zacks Investment Research (zacks.com).