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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is VEON (VEON). VEON is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.62, while its industry has an average P/E of 17.74. Over the past 52 weeks, VEON's Forward P/E has been as high as 10.57 and as low as 6.13, with a median of 8.78.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VEON has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.26.
Finally, our model also underscores that VEON has a P/CF ratio of 2.27. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.30. Over the past year, VEON's P/CF has been as high as 3.41 and as low as -1.12, with a median of 2.40.
Value investors will likely look at more than just these metrics, but the above data helps show that VEON is likely undervalued currently. And when considering the strength of its earnings outlook, VEON sticks out as one of the market's strongest value stocks.
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VEON Ltd. (VEON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).