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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
TPG RE Finance Trust (TRTX) is a stock many investors are watching right now. TRTX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 10.75. Over the last 12 months, TRTX's Forward P/E has been as high as 9.04 and as low as 6.64, with a median of 7.90.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TRTX has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.69.
These are only a few of the key metrics included in TPG RE Finance Trust'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, TRTX looks like an impressive value stock at the moment.
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TPG RE Finance Trust, Inc. (TRTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).