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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 AkzoNobel (AKZOY). AKZOY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.67. This compares to its industry's average Forward P/E of 16.85. Over the last 12 months, AKZOY's Forward P/E has been as high as 15.27 and as low as 11.45, with a median of 13.22.
Investors will also notice that AKZOY has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AKZOY's industry has an average PEG of 1.76 right now. AKZOY's PEG has been as high as 0.73 and as low as 0.58, with a median of 0.65, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AkzoNobel is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AKZOY feels like a great value stock at the moment.
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Akzo Nobel NV (AKZOY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).