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.
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.
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.
Wolverine World Wide (WWW) is a stock many investors are watching right now. WWW is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.9, which compares to its industry's average of 20.94. WWW's Forward P/E has been as high as 25.28 and as low as 7.61, with a median of 15.45, all within the past year.
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. WWW has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.79.
These are only a few of the key metrics included in Wolverine World Wide'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, WWW looks like an impressive value stock at the moment.
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Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).