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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
EDENRED (EDNMY – Free Report) is a stock many investors are watching right now. EDNMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.72. This compares to its industry’s average Forward P/E of 30.62. Over the past 52 weeks, EDNMY’s Forward P/E has been as high as 22.85 and as low as 11.45, with a median of 15.85.
We also note that EDNMY holds a PEG ratio of 1.26. 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. EDNMY’s industry currently sports an average PEG of 1.61. Within the past year, EDNMY’s PEG has been as high as 1.33 and as low as 0.54, with a median of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that EDENRED is likely undervalued currently. And when considering the strength of its earnings outlook, EDNMY sticks out at as one of the market’s strongest value stocks.
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