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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Itochu (ITOCY). ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.72, which compares to its industry's average of 15.89. ITOCY's Forward P/E has been as high as 24.17 and as low as 10.29, with a median of 11.45, all within the past year.
Finally, investors should note that ITOCY has a P/CF ratio of 8.50. 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. ITOCY's P/CF compares to its industry's average P/CF of 17.95. Over the past year, ITOCY's P/CF has been as high as 10.18 and as low as 6.72, with a median of 8.20.
These are only a few of the key metrics included in Itochu'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, ITOCY looks like an impressive value stock at the moment.
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Itochu Corp. (ITOCY) : Free Stock Analysis Report