The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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 Fox (FOX). FOX is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.3 right now. For comparison, its industry sports an average P/E of 20.06. Over the last 12 months, FOX's Forward P/E has been as high as 13.89 and as low as 10.11, with a median of 11.60.
Another notable valuation metric for FOX is its P/B ratio of 2.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FOX's current P/B looks attractive when compared to its industry's average P/B of 4.93. FOX's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.88, over the past year.
These are only a few of the key metrics included in Fox's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FOX looks like an impressive 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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Fox Corporation (FOX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).