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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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Brennt (BNTGY). BNTGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.89, while its industry has an average P/E of 16. BNTGY's Forward P/E has been as high as 15.62 and as low as 11.03, with a median of 13.75, all within the past year.
Finally, we should also recognize that BNTGY has a P/CF ratio of 8.58. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.62. Over the past 52 weeks, BNTGY's P/CF has been as high as 10.92 and as low as 7.55, with a median of 9.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brennt is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BNTGY feels like a great value stock at the moment.
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This article originally published on Zacks Investment Research (zacks.com).