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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Fidelity National Financial (FNF). FNF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.26, while its industry has an average P/E of 27.55. Over the past 52 weeks, FNF's Forward P/E has been as high as 13.53 and as low as 8.87, with a median of 10.32.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FNF has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.2.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fidelity National Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNF feels like a great value stock at the moment.
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Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report