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.
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.
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.
Synnex (SNX) is a stock many investors are watching right now. SNX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.95. This compares to its industry's average Forward P/E of 23.85. Over the last 12 months, SNX's Forward P/E has been as high as 12.75 and as low as 4.67, with a median of 8.96.
We also note that SNX holds a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNX's PEG compares to its industry's average PEG of 2.20. SNX's PEG has been as high as 1.36 and as low as 0.45, with a median of 0.86, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Synnex is likely undervalued currently. And when considering the strength of its earnings outlook, SNX sticks out at as one of the market's strongest value stocks.
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