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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Qifu Technology, Inc. (QFIN – Free Report) . QFIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that QFIN holds a PEG ratio of 0.81. 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. QFIN’s PEG compares to its industry’s average PEG of 1.69. Over the past 52 weeks, QFIN’s PEG has been as high as 0.81 and as low as 0.27, with a median of 0.41.
Investors should also recognize that QFIN has a P/B ratio of 2.13. The P/B ratio is used to compare a stock’s market value with its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid versus its industry’s average P/B of 6.27. QFIN’s P/B has been as high as 2.26 and as low as 0.92, with a median of 1.32, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Qifu Technology, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, QFIN feels like a great value stock at the moment.
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