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.
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.
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.
One company to watch right now is Concentrix (CNXC). CNXC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.71. This compares to its industry's average Forward P/E of 13.05. Over the past year, CNXC's Forward P/E has been as high as 5.64 and as low as 3.16, with a median of 4.16.
CNXC is also sporting a PEG ratio of 0.65. 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. CNXC's industry has an average PEG of 1.36 right now. Within the past year, CNXC's PEG has been as high as 0.71 and as low as 0.44, with a median of 0.57.
Finally, investors will want to recognize that CNXC has a P/CF ratio of 4.05. 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. CNXC's current P/CF looks attractive when compared to its industry's average P/CF of 9.42. Within the past 12 months, CNXC's P/CF has been as high as 4.50 and as low as 2.60, with a median of 3.31.
These are only a few of the key metrics included in Concentrix'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, CNXC looks like an impressive value stock at the moment.
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Concentrix Corporation (CNXC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).