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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.15 right now. For comparison, its industry sports an average P/E of 6.54. 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, all within the past year.
Investors will also notice that ZIM has a PEG ratio of 0.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZIM's PEG compares to its industry's average PEG of 0.33. Within the past year, ZIM's PEG has been as high as 64.75 and as low as -244.82, with a median of 0.32.
Investors should also recognize that ZIM has a P/B ratio of 0.58. 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 solid versus its industry's average P/B of 1.67. Over the past 12 months, ZIM's P/B has been as high as 1.13 and as low as 0.45, with a median of 0.69.
These are just a handful of the figures considered in ZIM Integrated Shipping Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ZIM is an impressive value stock right now.
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