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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Vontier (VNT) is a stock many investors are watching right now. VNT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.63. This compares to its industry's average Forward P/E of 20.63. Over the last 12 months, VNT's Forward P/E has been as high as 12.96 and as low as 8.65, with a median of 11.59.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VNT has a P/S ratio of 1.45. This compares to its industry's average P/S of 1.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Vontier is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VNT feels like a great value stock at the moment.
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Vontier Corporation (VNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).