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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.
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.
Molson Coors (TAP) is a stock many investors are watching right now. TAP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.88, while its industry has an average P/E of 14.13. Over the past year, TAP's Forward P/E has been as high as 11.89 and as low as 8.56, with a median of 9.59.
We also note that TAP holds a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TAP's industry has an average PEG of 4.92 right now. Within the past year, TAP's PEG has been as high as 2.72 and as low as 1.76, with a median of 2.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TAP has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Molson Coors is likely undervalued currently. And when considering the strength of its earnings outlook, TAP sticks out at as one of the market's strongest value stocks.
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Molson Coors Beverage Company (TAP) : Free Stock Analysis Report