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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Wynn Resorts (WYNN). WYNN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.04. This compares to its industry's average Forward P/E of 28.47. Over the last 12 months, WYNN's Forward P/E has been as high as 20.46 and as low as 12.68, with a median of 17.23.
Finally, investors should note that WYNN has a P/CF ratio of 7.81. 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. WYNN's P/CF compares to its industry's average P/CF of 29.42. Within the past 12 months, WYNN's P/CF has been as high as 8.47 and as low as 5.08, with a median of 6.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wynn Resorts is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WYNN feels like a great value stock at the moment.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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