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.
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 stock to keep an eye on is Perdoceo Education (PRDO – Free Report) . PRDO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.66, which compares to its industry’s average of 20.43. PRDO’s Forward P/E has been as high as 12.05 and as low as 7.75, with a median of 9.41, all within the past year.
We also note that PRDO holds a PEG ratio of 0.78. 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. PRDO’s PEG compares to its industry’s average PEG of 1.05. PRDO’s PEG has been as high as 0.80 and as low as 0.52, with a median of 0.63, all within the past year.
We should also highlight that PRDO has a P/B ratio of 1.86. The P/B is a method of comparing a stock’s market value to 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 3.24. Over the past year, PRDO’s P/B has been as high as 1.97 and as low as 1.28, with a median of 1.57.
Finally, investors should note that PRDO has a P/CF ratio of 12.21. 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. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 44.44. Within the past 12 months, PRDO’s P/CF has been as high as 12.95 and as low as 6.72, with a median of 9.54.
These are just a handful of the figures considered in Perdoceo Education’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 PRDO is an impressive value stock right now.
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