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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One company value investors might notice is ProFrac Holding Corp. (ACDC – Free Report) . ACDC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is ACDC’s P/B ratio of 1.13. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. ACDC’s current P/B looks attractive when compared to its industry’s average P/B of 2.20. Over the past year, ACDC’s P/B has been as high as 1.25 and as low as 0.73, with a median of 0.98.
Finally, we should also recognize that ACDC has a P/CF ratio of 4.98. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ACDC’s P/CF compares to its industry’s average P/CF of 9.26. Over the past year, ACDC’s P/CF has been as high as 5.53 and as low as 2.86, with a median of 4.16.
These are only a few of the key metrics included in ProFrac Holding Corp.’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ACDC looks like an impressive value stock at the moment.
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