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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Mitie Group (MITFY). MITFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.11, which compares to its industry's average of 26.97. Over the past year, MITFY's Forward P/E has been as high as 11.44 and as low as 7.96, with a median of 9.64.
Another notable valuation metric for MITFY is its P/B ratio of 4.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.71. Over the past 12 months, MITFY's P/B has been as high as 4.57 and as low as 3.05, with a median of 3.44.
These are just a handful of the figures considered in Mitie Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MITFY is an impressive value stock right now.
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Mitie Group PLC. (MITFY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).