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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Macro Bank (BMA). BMA is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.21, which compares to its industry's average of 10.72. BMA's Forward P/E has been as high as 13.85 and as low as 4.76, with a median of 8.22, all within the past year.
Investors will also notice that BMA has a PEG ratio of 0.38. 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. BMA's PEG compares to its industry's average PEG of 0.68. Over the last 12 months, BMA's PEG has been as high as 0.46 and as low as 0.21, with a median of 0.29.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMA has a P/S ratio of 0.82. This compares to its industry's average P/S of 2.02.
These are only a few of the key metrics included in Macro Bank'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, BMA looks like an impressive value stock at the moment.
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Macro Bank Inc. (BMA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).