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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.
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.
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 CarMax (KMX - Free Report) . KMX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that KMX has a PEG ratio of 1.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KMX's PEG compares to its industry's average PEG of 1.51. Over the last 12 months, KMX's PEG has been as high as 1.57 and as low as 1.01, with a median of 1.31.
Finally, investors will want to recognize that KMX has a P/CF ratio of 19.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 29.77. Over the past year, KMX's P/CF has been as high as 20.19 and as low as 13.47, with a median of 16.65.
Value investors will likely look at more than just these metrics, but the above data helps show that CarMax is likely undervalued currently. And when considering the strength of its earnings outlook, KMX sticks out at as one of the market's strongest value stocks.
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Is CarMax (KMX) Stock Undervalued Right Now?
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.
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.
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 CarMax (KMX - Free Report) . KMX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that KMX has a PEG ratio of 1.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KMX's PEG compares to its industry's average PEG of 1.51. Over the last 12 months, KMX's PEG has been as high as 1.57 and as low as 1.01, with a median of 1.31.
Finally, investors will want to recognize that KMX has a P/CF ratio of 19.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 29.77. Over the past year, KMX's P/CF has been as high as 20.19 and as low as 13.47, with a median of 16.65.
Value investors will likely look at more than just these metrics, but the above data helps show that CarMax is likely undervalued currently. And when considering the strength of its earnings outlook, KMX sticks out at as one of the market's strongest value stocks.