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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Mitsui & Co. (MITSY). MITSY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that MITSY has a P/B ratio of 1.06. 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 stock's P/B looks attractive against its industry's average P/B of 1.21. Over the past 12 months, MITSY's P/B has been as high as 1.49 and as low as 0.96, with a median of 1.21.
Finally, our model also underscores that MITSY has a P/CF ratio of 6.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.44. MITSY's P/CF has been as high as 8.54 and as low as 5.79, with a median of 6.92, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mitsui & Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MITSY feels like a great value stock at the moment.
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This article originally published on Zacks Investment Research (zacks.com).
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