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.
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.
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 Bed Bath & Beyond (BBBY). BBBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBBY has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.35.
Finally, investors will want to recognize that BBBY has a P/CF ratio of 5.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBBY's P/CF compares to its industry's average P/CF of 19.80. Over the past year, BBBY's P/CF has been as high as 5.36 and as low as 1.35, with a median of 2.93.
These are just a handful of the figures considered in Bed Bath & Beyond'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 BBBY is an impressive value stock right now.
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Bed Bath Beyond Inc. (BBBY) : Free Stock Analysis Report
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