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.
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.
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 Visteon (VC). VC 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 13.69, which compares to its industry's average of 19.09. Over the last 12 months, VC's Forward P/E has been as high as 14.33 and as low as 8.02, with a median of 10.34.
Another notable valuation metric for VC is its P/B ratio of 2.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.27. VC's P/B has been as high as 2.34 and as low as 1.31, with a median of 1.87, over the past year.
These are only a few of the key metrics included in Visteon'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, VC looks like an impressive value stock at the moment.
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Visteon Corporation (VC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).