Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Cracker Barrel Old Country Store (CBRL). CBRL is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 21.8, while its industry has an average P/E of 22.52. CBRL's Forward P/E has been as high as 22.15 and as low as 11.15, with a median of 16.36, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CBRL has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Cracker Barrel Old Country Store is likely undervalued currently. And when considering the strength of its earnings outlook, CBRL sticks out as one of the market's strongest value stocks.
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Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).