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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is TPG Mortgage Investment Trust Inc. (MITT). MITT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for MITT is its P/B ratio of 0.73. 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 stock's P/B looks attractive against its industry's average P/B of 0.94. Within the past 52 weeks, MITT's P/B has been as high as 0.74 and as low as 0.53, with a median of 0.67.
Finally, we should also recognize that MITT has a P/CF ratio of 3.89. 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 6.90. Over the past year, MITT's P/CF has been as high as 3.91 and as low as 2.25, with a median of 3.26.
These are just a handful of the figures considered in TPG Mortgage Investment Trust 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 MITT is an impressive value stock right now.
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TPG Mortgage Investment Trust Inc. (MITT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).