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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Bayer (DE:BAYGN) (BAYRY). BAYRY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.96, while its industry has an average P/E of 15.57. Over the last 12 months, BAYRY's Forward P/E has been as high as 15.01 and as low as 7.94, with a median of 10.65.
Investors will also notice that BAYRY has a PEG ratio of 0.77. 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. BAYRY's industry currently sports an average PEG of 1.87. Within the past year, BAYRY's PEG has been as high as 2.92 and as low as 0.77, with a median of 1.29.
Finally, investors will want to recognize that BAYRY has a P/CF ratio of 11.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BAYRY's current P/CF looks attractive when compared to its industry's average P/CF of 16.21. Over the past 52 weeks, BAYRY's P/CF has been as high as 14.69 and as low as 6.20, with a median of 8.83.
These are only a few of the key metrics included in Bayer'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, BAYRY looks like an impressive value stock at the moment.
Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report
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