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, 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.
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 to watch right now is Bed Bath & Beyond (BBBY). BBBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.01, while its industry has an average P/E of 14.28. Over the past year, BBBY's Forward P/E has been as high as 9.77 and as low as 6.29, with a median of 8.07.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBBY has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bed Bath & Beyond is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBBY feels like a great value stock at the moment.
Bed Bath & Beyond Inc. (NASDAQ:BBBY): Free Stock Analysis Report
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Zacks Investment Research