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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Hilton Grand Vacations (HGV). HGV is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.73, while its industry has an average P/E of 22.30. Over the past year, HGV's Forward P/E has been as high as 14.57 and as low as 8.56, with a median of 11.43.
Finally, investors should note that HGV has a P/CF ratio of 11.33. 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. HGV's current P/CF looks attractive when compared to its industry's average P/CF of 24.19. Over the past year, HGV's P/CF has been as high as 13.16 and as low as 7.91, with a median of 9.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hilton Grand Vacations is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HGV feels like a great value stock at the moment.
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Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).