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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 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 Golden Ocean Group (GOGL). GOGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that GOGL has a P/B ratio of 0.81. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past year, GOGL's P/B has been as high as 1.63 and as low as 0.81, with a median of 1.25.
Finally, we should also recognize that GOGL has a P/CF ratio of 4.14. 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. GOGL's current P/CF looks attractive when compared to its industry's average P/CF of 4.29. Within the past 12 months, GOGL's P/CF has been as high as 10.38 and as low as 4.14, with a median of 6.70.
These are only a few of the key metrics included in Golden Ocean Group'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, GOGL looks like an impressive value stock at the moment.
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Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).