In This Article:
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is ZIM Integrated Shipping Services (ZIM). ZIM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.32, which compares to its industry's average of 7.68. Over the last 12 months, ZIM's Forward P/E has been as high as 2,112.74 and as low as -7,988.51, with a median of 8.24.
We also note that ZIM holds a PEG ratio of 0.24. 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. ZIM's industry has an average PEG of 0.39 right now. Over the past 52 weeks, ZIM's PEG has been as high as 64.75 and as low as -244.82, with a median of 0.35.
These are only a few of the key metrics included in ZIM Integrated Shipping Services'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, ZIM looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report