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.
One stock to keep an eye on is Broadwind Energy (BWEN). BWEN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.28 right now. For comparison, its industry sports an average P/E of 22.96. Over the last 12 months, BWEN's Forward P/E has been as high as 122.56 and as low as 4.52, with a median of 12.24.
Finally, our model also underscores that BWEN has a P/CF ratio of 10.54. 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. BWEN's current P/CF looks attractive when compared to its industry's average P/CF of 26.26. Over the past 52 weeks, BWEN's P/CF has been as high as 14.47 and as low as 3.38, with a median of 5.45.
Value investors will likely look at more than just these metrics, but the above data helps show that Broadwind Energy is likely undervalued currently. And when considering the strength of its earnings outlook, BWEN sticks out as one of the market's strongest value stocks.
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Broadwind Energy, Inc. (BWEN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).