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.
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.
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.
One company to watch right now is Screen Holdings (DINRF). DINRF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.54, which compares to its industry’s average of 24.40. DINRF’s Forward P/E has been as high as 16.51 and as low as 6.31, with a median of 13.57, all within the past year.
Another notable valuation metric for DINRF is its P/B ratio of 2.09. Investors use the P/B ratio to look at a stock’s market value versus its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive against its industry’s average P/B of 5.71. Within the past 52 weeks, DINRF’s P/B has been as high as 2.80 and as low as 0.90, with a median of 2.35.
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. DINRF has a P/S ratio of 1.3. This compares to its industry’s average P/S of 2.1.
Finally, investors should note that DINRF has a P/CF ratio of 15.75. This data point considers a firm’s operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DINRF’s current P/CF looks attractive when compared to its industry’s average P/CF of 16.55. DINRF’s P/CF has been as high as 21.17 and as low as 6.82, with a median of 17.76, all within the past year.
SUMCO (SUOPY) may be another strong Semiconductor – General stock to add to your shortlist. SUOPY is a # 1 (Strong Buy) stock with a Value grade of A.
SUMCO sports a P/B ratio of 1.05 as well; this compares to its industry’s price-to-book ratio of 5.71. In the past 52 weeks, SUOPY’s P/B has been as high as 2.25, as low as 1.05, with a median of 2.01.
These are just a handful of the figures considered in Screen Holdings and SUMCO’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 DINRF and SUOPY is an impressive value stock right now.
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Screen Holdings Co., Ltd (DINRF): Free Stock Analysis Report
SUMCO (SUOPY): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.