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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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
Centrus Energy (LEU)
. LEU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.59, which compares to its industry’s average of 9.49. Over the last 12 months, LEU’s Forward P/E has been as high as 25.82 and as low as 5.79, with a median of 12.66.
Finally, investors will want to recognize that LEU has a P/CF ratio of 2.22. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LEU’s P/CF compares to its industry’s average P/CF of 5.93. Over the past year, LEU’s P/CF has been as high as 15.99 and as low as 1.53, with a median of 6.30.
Investors could also keep in mind
Lundin Mining (LUNMF)
, an Mining – Non Ferrous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Lundin Mining has a P/B ratio of 0.90 while its industry’s price-to-book ratio sits at 1.81. For LUNMF, this valuation metric has been as high as 1.56, as low as 0.90, with a median of 1.28 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Centrus Energy and Lundin Mining are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEU and LUNMF feels like a great value stock at the moment.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the
Zacks Top 10 Stocks
portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
