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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Lufax (LU). LU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.15, while its industry has an average P/E of 12.32. Over the past year, LU's Forward P/E has been as high as 19.33 and as low as 4.15, with a median of 8.17.
Investors will also notice that LU has a PEG ratio of 0.25. 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. LU's industry currently sports an average PEG of 0.65. Over the past 52 weeks, LU's PEG has been as high as 3.29 and as low as 0.25, with a median of 0.56.
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. LU has a P/S ratio of 1.35. This compares to its industry's average P/S of 2.52.
PJT Partners (PJT) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. PJT is a # 2 (Buy) stock with a Value grade of A.
Furthermore, PJT Partners holds a P/B ratio of 3.06 and its industry's price-to-book ratio is 4.55. PJT's P/B has been as high as 3.63, as low as 2.29, with a median of 2.80 over the past 12 months.
These are just a handful of the figures considered in Lufax and PJT Partners'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 LU and PJT is an impressive value stock right now.
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