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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Pedevco (PED). PED is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.80. This compares to its industry's average Forward P/E of 11.86. Over the past year, PED's Forward P/E has been as high as 33.33 and as low as 9.88, with a median of 12.16.
Investors should also recognize that PED has a P/B ratio of 0.41. 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 0.99. Over the past 12 months, PED's P/B has been as high as 0.93 and as low as 0.38, with a median of 0.75.
These are just a handful of the figures considered in Pedevco'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 PED is an impressive value stock right now.
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Pedevco Corp. (PED) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).