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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
CBIZ (CBZ) is a stock many investors are watching right now. CBZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.83. This compares to its industry's average Forward P/E of 14.70. Over the last 12 months, CBZ's Forward P/E has been as high as 30.87 and as low as 13.83, with a median of 20.19.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CBZ has a P/S ratio of 1.07. This compares to its industry's average P/S of 1.32.
These are just a handful of the figures considered in CBIZ's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBZ is an impressive value stock right now.
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CBIZ, Inc. (CBZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).