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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
PENN Entertainment, Inc. (PENN) is a stock many investors are watching right now. PENN is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 20.28, while its industry has an average P/E of 23.97. Over the last 12 months, PENN's Forward P/E has been as high as 279.91 and as low as -13.04, with a median of 40.68.
Playtika (PLTK) may be another strong Gaming stock to add to your shortlist. PLTK is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Shares of Playtika currently hold a Forward P/E ratio of 5.78, and its PEG ratio is 0.80. In comparison, its industry sports average P/E and PEG ratios of 23.97 and 1.63.
PLTK's Forward P/E has been as high as 12.56 and as low as 5.78, with a median of 8.77. During the same time period, its PEG ratio has been as high as 2.80, as low as 0.80, with a median of 1.20.
Additionally, Playtika has a P/B ratio of -14.70 while its industry's price-to-book ratio sits at 9.81. For PLTK, this valuation metric has been as high as -11.40, as low as -32.72, with a median of -19.49 over the past year.
These are only a few of the key metrics included in PENN Entertainment, Inc. and Playtika strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PENN and PLTK look like an impressive value stock at the moment.
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PENN Entertainment, Inc. (PENN): Free Stock Analysis Report
Playtika Holding Corp. (PLTK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).