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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Invesco Mortgage Capital (IVR). IVR 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 3.7, which compares to its industry's average of 7.80. Over the past year, IVR's Forward P/E has been as high as 4.12 and as low as 2.63, with a median of 3.41.
Another valuation metric that we should highlight is IVR's P/B ratio of 0.9. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.93. Over the past year, IVR's P/B has been as high as 0.99 and as low as 0.70, with a median of 0.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Invesco Mortgage Capital is likely undervalued currently. And when considering the strength of its earnings outlook, IVR sticks out as one of the market's strongest value stocks.
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INVESCO MORTGAGE CAPITAL INC (IVR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).