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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
ARKO (ARKO) is a stock many investors are watching right now. ARKO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also recognize that ARKO has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ARKO's current P/B looks attractive when compared to its industry's average P/B of 5.06. Over the past year, ARKO's P/B has been as high as 3.27 and as low as 1.60, with a median of 2.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ARKO is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARKO feels like a great value stock at the moment.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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ARKO Corp. (ARKO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).