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.
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 Globe Life (GL – Free Report) . GL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.68. This compares to its industry’s average Forward P/E of 13.86. Over the past 52 weeks, GL’s Forward P/E has been as high as 10.58 and as low as 4.15, with a median of 8.13.
Another valuation metric that we should highlight is GL’s P/B ratio of 1.94. The P/B ratio pits a stock’s market value against 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 2.56. Within the past 52 weeks, GL’s P/B has been as high as 2.61 and as low as 0.92, with a median of 1.86.
Finally, investors will want to recognize that GL has a P/CF ratio of 7.01. 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 15.05. Over the past 52 weeks, GL’s P/CF has been as high as 8.79 and as low as 3.39, with a median of 6.44.
These are just a handful of the figures considered in Globe Life’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 GL is an impressive value stock right now.
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