While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 stock to keep an eye on is
Apogee Enterprises (APOG)
. APOG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 16.85. This compares to its industry’s average Forward P/E of 28.02. Over the last 12 months, APOG’s Forward P/E has been as high as 96.98 and as low as 14.06, with a median of 16.30.
Investors should also recognize that APOG has a P/B ratio of 2.48. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive against its industry’s average P/B of 3.31. APOG’s P/B has been as high as 2.68 and as low as 1.77, with a median of 2.10, over the past year.
These are only a few of the key metrics included in Apogee Enterprises’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, APOG looks like an impressive value stock at the moment.
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