Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
One company value investors might notice is USANA Health Sciences (USNA). USNA is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
Investors should also note that USNA holds a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. USNA's PEG compares to its industry's average PEG of 2.08. Within the past year, USNA's PEG has been as high as 1.39 and as low as 0.65, with a median of 0.87.
Another valuation metric that we should highlight is USNA's P/B ratio of 1.04. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. USNA's current P/B looks attractive when compared to its industry's average P/B of 1.62. USNA's P/B has been as high as 1.49 and as low as 0.83, with a median of 1.12, over the past year.
Finally, investors will want to recognize that USNA has a P/CF ratio of 8.43. 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 14.48. Over the past 52 weeks, USNA's P/CF has been as high as 10.82 and as low as 7.18, with a median of 9.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that USANA Health Sciences is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USNA feels like a great value stock at the moment.
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USANA Health Sciences, Inc. (USNA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).