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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
PENN Entertainment, Inc. (PENN) is a stock many investors are watching right now. PENN is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
PENN is also sporting a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PENN's PEG compares to its industry's average PEG of 1.26. Over the past 52 weeks, PENN's PEG has been as high as 12.26 and as low as -0.41, with a median of 1.28.
Finally, investors will want to recognize that PENN has a P/CF ratio of 7.83. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.66. Within the past 12 months, PENN's P/CF has been as high as 26.45 and as low as -37.74, with a median of 7.41.
These are just a handful of the figures considered in PENN Entertainment, Inc.'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 PENN is an impressive value stock right now.
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
PENN Entertainment, Inc. (PENN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).