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 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 company value investors might notice is Sensata Technologies Holding (ST). ST is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.88 right now. For comparison, its industry sports an average P/E of 14.73. Over the past 52 weeks, ST's Forward P/E has been as high as 10.14 and as low as 5.38, with a median of 8.77.
Investors will also notice that ST has a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ST's industry has an average PEG of 1.66 right now. Over the last 12 months, ST's PEG has been as high as 1.37 and as low as 0.72, with a median of 1.13.
We should also highlight that ST has a P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus 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 2.89. Over the past 12 months, ST's P/B has been as high as 1.85 and as low as 0.91, with a median of 1.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ST has a P/S ratio of 1.59. This compares to its industry's average P/S of 3.23.
Finally, investors should note that ST has a P/CF ratio of 8.32. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.41. Over the past year, ST's P/CF has been as high as 8.92 and as low as 4.54, with a median of 7.12.
These are just a handful of the figures considered in Sensata Technologies Holding's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ST is an impressive value stock right now.
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Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).