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.
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 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 Grupo Supervielle (SUPV). SUPV is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
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. SUPV has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.28.
Finally, investors should note that SUPV has a P/CF ratio of 5.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.10. Over the past 52 weeks, SUPV's P/CF has been as high as 6.64 and as low as 1.39, with a median of 2.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Grupo Supervielle is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUPV feels like a great value stock at the moment.
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