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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Brennt (BNTGY). BNTGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.76 right now. For comparison, its industry sports an average P/E of 15.95. BNTGY's Forward P/E has been as high as 18.23 and as low as 11.28, with a median of 14.10, all within the past year.
Another notable valuation metric for BNTGY is its P/B ratio of 1.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.84. Within the past 52 weeks, BNTGY's P/B has been as high as 2.92 and as low as 1.65, with a median of 2.14.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BNTGY has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.61.
Finally, investors will want to recognize that BNTGY has a P/CF ratio of 7.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BNTGY's P/CF compares to its industry's average P/CF of 9.94. Over the past 52 weeks, BNTGY's P/CF has been as high as 11.42 and as low as 7.55, with a median of 9.48.
These are only a few of the key metrics included in Brennt'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, BNTGY looks like an impressive value stock at the moment.