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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Cementos Pacasmayo (CPAC). CPAC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.03 right now. For comparison, its industry sports an average P/E of 23.20. CPAC's Forward P/E has been as high as 13.10 and as low as 7.26, with a median of 8.91, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPAC has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.44.
These are only a few of the key metrics included in Cementos Pacasmayo'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, CPAC looks like an impressive value stock at the moment.
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Cementos Pacasmayo S.A.A. (CPAC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).