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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is HAYS PLC (HAYPY). HAYPY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that HAYPY holds a PEG ratio of 1.45. 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. HAYPY's PEG compares to its industry's average PEG of 1.56. HAYPY's PEG has been as high as 1.46 and as low as 0.98, with a median of 1.16, all within the past year.
We should also highlight that HAYPY has a P/B ratio of 2.39. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.40. HAYPY's P/B has been as high as 3.59 and as low as 2.25, with a median of 3.07, over the past year.
These are just a handful of the figures considered in HAYS PLC'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 HAYPY is an impressive value stock right now.
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