Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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
First Quantum Minerals (FQVLF)
. FQVLF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 17.08. This compares to its industry’s average Forward P/E of 22.52. Over the last 12 months, FQVLF’s Forward P/E has been as high as 72.32 and as low as 5.34, with a median of 17.98.
We should also highlight that FQVLF has a P/B ratio of 1.14. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This company’s current P/B looks solid when compared to its industry’s average P/B of 2.75. FQVLF’s P/B has been as high as 2.10 and as low as 0.83, with a median of 1.35, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue. This is a prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. FQVLF has a P/S ratio of 1.75. This compares to its industry’s average P/S of 1.82.
Finally, investors should note that FQVLF has a P/CF ratio of 6.04. 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. FQVLF’s current P/CF looks attractive when compared to its industry’s average P/CF of 8.99. FQVLF’s P/CF has been as high as 11.94 and as low as 4.05, with a median of 7.19, all within the past year.
These are only a few of the key metrics included in First Quantum Minerals’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, FQVLF looks like an impressive value stock at the moment.
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