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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
ZTO Express Cayman (ZTO) is a stock many investors are watching right now. ZTO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 15.03. Over the past year, ZTO's Forward P/E has been as high as 14.00 and as low as 9.23, with a median of 10.72.
Finally, investors should note that ZTO has a P/CF ratio of 9.63. 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. ZTO's P/CF compares to its industry's average P/CF of 13.10. ZTO's P/CF has been as high as 13.96 and as low as 8.08, with a median of 9.89, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ZTO Express Cayman is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ZTO feels like a great value stock at the moment.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ZTO Express (Cayman) Inc. (ZTO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).