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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 to watch right now is Kubota (KUBTY). KUBTY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.15 right now. For comparison, its industry sports an average P/E of 18.81. Over the past year, KUBTY's Forward P/E has been as high as 14.68 and as low as 8.95, with a median of 12.20.
Finally, we should also recognize that KUBTY has a P/CF ratio of 7.47. 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 24.99. KUBTY's P/CF has been as high as 8.78 and as low as 5.95, with a median of 7.56, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Kubota is likely undervalued currently. And when considering the strength of its earnings outlook, KUBTY sticks out at as one of the market's strongest value stocks.
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Kubota Corp. (KUBTY) : Free Stock Analysis Report