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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Plains Group (PAGP). PAGP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.55, which compares to its industry's average of 21.39. Over the last 12 months, PAGP's Forward P/E has been as high as 18.69 and as low as 9.71, with a median of 12.44.
Value investors will likely look at more than just these metrics, but the above data helps show that Plains Group is likely undervalued currently. And when considering the strength of its earnings outlook, PAGP sticks out as one of the market's strongest value stocks.
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Plains Group Holdings, L.P. (PAGP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).