While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is CI Financial (CIXX). CIXX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 3.85, which compares to its industry's average of 9.54. Over the past 52 weeks, CIXX's Forward P/E has been as high as 8.95 and as low as 3.65, with a median of 5.37.
We also note that CIXX holds a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIXX's industry has an average PEG of 0.71 right now. Over the past 52 weeks, CIXX's PEG has been as high as 1.12 and as low as 0.46, with a median of 0.67.
We should also highlight that CIXX has a P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CIXX's current P/B looks attractive when compared to its industry's average P/B of 2.75. Over the past year, CIXX's P/B has been as high as 3.89 and as low as 1.37, with a median of 2.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CIXX has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.81.
Finally, investors will want to recognize that CIXX has a P/CF ratio of 3.99. 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. CIXX's P/CF compares to its industry's average P/CF of 13.29. Over the past 52 weeks, CIXX's P/CF has been as high as 10.50 and as low as 3.80, with a median of 5.73.
These are only a few of the key metrics included in CI Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CIXX looks like an impressive value stock at the moment.
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