Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 Primis Financial (FRST – Free Report) . FRST is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.66 right now. For comparison, its industry sports an average P/E of 14.54. Over the past year, FRST’s Forward P/E has been as high as 23.24 and as low as 5.71, with a median of 6.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FRST has a P/S ratio of 0.97. This compares to its industry’s average P/S of 1.74.
These are only a few of the key metrics included in Primis Financial’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, FRST looks like an impressive value stock at the moment.
Financial Market Newsflash
No financial news published today. Check back later.
