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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Seven and I Holdings Co. (SVNDY). SVNDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.39. This compares to its industry's average Forward P/E of 14.77. Over the past 52 weeks, SVNDY's Forward P/E has been as high as 19.06 and as low as 9.88, with a median of 12.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SVNDY has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.58.
Finally, investors should note that SVNDY has a P/CF ratio of 6.98. 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 15.47. Over the past 52 weeks, SVNDY's P/CF has been as high as 8.49 and as low as 5.65, with a median of 7.13.
These are only a few of the key metrics included in Seven and I Holdings Co.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SVNDY looks like an impressive value stock at the moment.
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Seven and I Holdings Co. (SVNDY) : Free Stock Analysis Report