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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 stock to keep an eye on is OMV (OMVKY). OMVKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.03. This compares to its industry's average Forward P/E of 10.32. Over the last 12 months, OMVKY's Forward P/E has been as high as 8.28 and as low as 5.52, with a median of 6.22.
We also note that OMVKY holds a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OMVKY's PEG compares to its industry's average PEG of 1.16. Within the past year, OMVKY's PEG has been as high as 1.14 and as low as 0.75, with a median of 0.93.
Investors should also recognize that OMVKY has a P/B ratio of 0.62. 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 solid versus its industry's average P/B of 1.34. Within the past 52 weeks, OMVKY's P/B has been as high as 0.64 and as low as 0.47, with a median of 0.54.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OMVKY has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.58.
These are just a handful of the figures considered in OMV'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 OMVKY is an impressive value stock right now.