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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Expedia Group (EXPE – Free Report) . EXPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.19, while its industry has an average P/E of 26.02. Over the past year, EXPE’s Forward P/E has been as high as 16.03 and as low as 8.21, with a median of 10.53.
EXPE is also sporting a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. EXPE’s industry has an average PEG of 1.06 right now. EXPE’s PEG has been as high as 0.79 and as low as 0.25, with a median of 0.34, all within the past year.
Finally, we should also recognize that EXPE has a P/CF ratio of 10. This metric takes into account a company’s operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 16.29. Over the past year, EXPE’s P/CF has been as high as 10.32 and as low as 6, with a median of 7.93.
These are just a handful of the figures considered in Expedia Group’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 EXPE is an impressive value stock right now.
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