While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Cabot (CBT) is a stock many investors are watching right now. CBT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.86, while its industry has an average P/E of 13.07. Over the past year, CBT's Forward P/E has been as high as 15.68 and as low as 9.12, with a median of 10.57.
These are only a few of the key metrics included in Cabot's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CBT looks like an impressive value stock at the moment.
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Cabot Corporation (CBT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).