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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Yara International ASA (YARIY). YARIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.40 right now. For comparison, its industry sports an average P/E of 13.18. Over the last 12 months, YARIY's Forward P/E has been as high as 30.27 and as low as 6.50, with a median of 10.62.
We should also highlight that YARIY has a P/B ratio of 1.06. The P/B ratio pits a stock's market value against 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 2.15. Over the past year, YARIY's P/B has been as high as 1.28 and as low as 0.94, with a median of 1.06.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YARIY has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.13.
Finally, our model also underscores that YARIY has a P/CF ratio of 4.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.13. YARIY's P/CF has been as high as 8.55 and as low as 4.87, with a median of 6.58, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Yara International ASA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YARIY feels like a great value stock at the moment.