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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Acadia Healthcare (ACHC). ACHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.56. This compares to its industry's average Forward P/E of 14.13. Over the past year, ACHC's Forward P/E has been as high as 16.79 and as low as 10.18, with a median of 14.76.
Finally, investors should note that ACHC has a P/CF ratio of 6.33. 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 7.27. Over the past year, ACHC's P/CF has been as high as 10.38 and as low as 5.51, with a median of 8.97.
These are just a handful of the figures considered in Acadia Healthcare'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 ACHC is an impressive value stock right now.
Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
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Zacks Investment Research