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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Norwegian Cruise Line (NCLH). NCLH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.13, which compares to its industry's average of 18.97. NCLH's Forward P/E has been as high as 15.91 and as low as 9.06, with a median of 12.64, all within the past year.
Finally, our model also underscores that NCLH has a P/CF ratio of 8.74. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.05. Over the past 52 weeks, NCLH's P/CF has been as high as 9.67 and as low as 5.32, with a median of 7.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Norwegian Cruise Line is likely undervalued currently. And when considering the strength of its earnings outlook, NCLH sticks out at as one of the market's strongest value stocks.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report