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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Nomura (NMR). NMR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.61, while its industry has an average P/E of 14.32. NMR's Forward P/E has been as high as 18.79 and as low as 8.52, with a median of 10.21, all within the past year.
Another valuation metric that we should highlight is NMR's P/B ratio of 0.84. 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. NMR's current P/B looks attractive when compared to its industry's average P/B of 2.22. NMR's P/B has been as high as 0.86 and as low as 0.64, with a median of 0.75, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NMR has a P/S ratio of 0.75. This compares to its industry's average P/S of 2.19.
Finally, our model also underscores that NMR has a P/CF ratio of 7.85. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NMR's current P/CF looks attractive when compared to its industry's average P/CF of 16.72. NMR's P/CF has been as high as 16.59 and as low as 6.38, with a median of 9.97, all within the past year.
These are just a handful of the figures considered in Nomura'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 NMR is an impressive value stock right now.
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Nomura Holdings Inc ADR (NMR) : Free Stock Analysis Report
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