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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
PENN Entertainment, Inc. (PENN) is a stock many investors are watching right now. PENN is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 20.28. This compares to its industry's average Forward P/E of 23.88. Over the last 12 months, PENN's Forward P/E has been as high as 279.91 and as low as -13.04, with a median of 40.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PENN Entertainment, Inc. is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PENN feels like a great value stock at the moment.
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PENN Entertainment, Inc. (PENN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).