While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Sun Country Airlines (SNCY). SNCY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 9.90. Over the last 12 months, SNCY's Forward P/E has been as high as 14.79 and as low as 4.54, with a median of 7.24.
Investors will also notice that SNCY has a PEG ratio of 0.19. 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. SNCY's PEG compares to its industry's average PEG of 0.42. Over the past 52 weeks, SNCY's PEG has been as high as 0.66 and as low as 0.11, with a median of 0.20.
Another notable valuation metric for SNCY is its P/B ratio of 1.1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SNCY's current P/B looks attractive when compared to its industry's average P/B of 2.51. SNCY's P/B has been as high as 1.69 and as low as 0.72, with a median of 1.13, over the past year.
Finally, investors will want to recognize that SNCY has a P/CF ratio of 4.38. 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. SNCY's current P/CF looks attractive when compared to its industry's average P/CF of 5.72. Over the past 52 weeks, SNCY's P/CF has been as high as 6.71 and as low as 3.00, with a median of 4.53.
These are only a few of the key metrics included in Sun Country Airlines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNCY looks like an impressive value stock at the moment.
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Sun Country Airlines Holdings, Inc. (SNCY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).