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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.
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.
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.
One company to watch right now is Scorpio Tankers (STNG). STNG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that STNG has a P/B ratio of 0.60. The P/B is a method of comparing a stock's market value to 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 1.25. Over the past year, STNG's P/B has been as high as 1.61 and as low as 0.56, with a median of 1.22.
Finally, our model also underscores that STNG has a P/CF ratio of 1.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.58. Over the past 52 weeks, STNG's P/CF has been as high as 5.62 and as low as 1.77, with a median of 3.98.
These are just a handful of the figures considered in Scorpio Tankers'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 STNG is an impressive value stock right now.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).