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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is Jabil (JBL - Free Report) . JBL 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 17.92, which compares to its industry's average of 20.34. Over the past 52 weeks, JBL's Forward P/E has been as high as 18.57 and as low as 10.72, with a median of 13.85.
Investors should also note that JBL holds a PEG ratio of 1.43. 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. JBL's industry currently sports an average PEG of 1.59. Over the last 12 months, JBL's PEG has been as high as 2.17 and as low as 0.96, with a median of 1.35.
Finally, we should also recognize that JBL has a P/CF ratio of 9.85. 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. JBL's current P/CF looks attractive when compared to its industry's average P/CF of 12.18. Over the past 52 weeks, JBL's P/CF has been as high as 11.38 and as low as 5.56, with a median of 6.98.
Investors could also keep in mind Sanmina (SANM - Free Report) , an Electronics - Manufacturing Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sanmina is trading at a forward earnings multiple of 14.03 at the moment, with a PEG ratio of 1.05. This compares to its industry's average P/E of 20.34 and average PEG ratio of 1.59.
SANM's Forward P/E has been as high as 14.03 and as low as 9.58, with a median of 10.98. During the same time period, its PEG ratio has been as high as 1.55, as low as 0.71, with a median of 1.07.
Sanmina also has a P/B ratio of 2.02 compared to its industry's price-to-book ratio of 6.88. Over the past year, its P/B ratio has been as high as 2.02, as low as 1.38, with a median of 1.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Jabil and Sanmina are likely undervalued currently. And when considering the strength of its earnings outlook, JBL and SANM sticks out as one of the market's strongest value stocks.
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Is Jabil (JBL) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is Jabil (JBL - Free Report) . JBL 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 17.92, which compares to its industry's average of 20.34. Over the past 52 weeks, JBL's Forward P/E has been as high as 18.57 and as low as 10.72, with a median of 13.85.
Investors should also note that JBL holds a PEG ratio of 1.43. 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. JBL's industry currently sports an average PEG of 1.59. Over the last 12 months, JBL's PEG has been as high as 2.17 and as low as 0.96, with a median of 1.35.
Finally, we should also recognize that JBL has a P/CF ratio of 9.85. 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. JBL's current P/CF looks attractive when compared to its industry's average P/CF of 12.18. Over the past 52 weeks, JBL's P/CF has been as high as 11.38 and as low as 5.56, with a median of 6.98.
Investors could also keep in mind Sanmina (SANM - Free Report) , an Electronics - Manufacturing Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sanmina is trading at a forward earnings multiple of 14.03 at the moment, with a PEG ratio of 1.05. This compares to its industry's average P/E of 20.34 and average PEG ratio of 1.59.
SANM's Forward P/E has been as high as 14.03 and as low as 9.58, with a median of 10.98. During the same time period, its PEG ratio has been as high as 1.55, as low as 0.71, with a median of 1.07.
Sanmina also has a P/B ratio of 2.02 compared to its industry's price-to-book ratio of 6.88. Over the past year, its P/B ratio has been as high as 2.02, as low as 1.38, with a median of 1.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Jabil and Sanmina are likely undervalued currently. And when considering the strength of its earnings outlook, JBL and SANM sticks out as one of the market's strongest value stocks.