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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Progyny (PGNY). PGNY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.02. This compares to its industry's average Forward P/E of 14.59. Over the past year, PGNY's Forward P/E has been as high as 14.50 and as low as 8.81, with a median of 12.68.
Investors should also note that PGNY holds a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PGNY's industry has an average PEG of 1.24 right now. Over the past 52 weeks, PGNY's PEG has been as high as 0.94 and as low as 0.50, with a median of 0.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Progyny is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PGNY feels like a great value stock at the moment.
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Progyny, Inc. (PGNY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).