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.
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.
Central Japan Railway Co. (CJPRY) is a stock many investors are watching right now. CJPRY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.69, which compares to its industry's average of 18.30. Over the past 52 weeks, CJPRY's Forward P/E has been as high as 9.08 and as low as 6.14, with a median of 7.17.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CJPRY has a P/S ratio of 2.07. This compares to its industry's average P/S of 4.82.
These are just a handful of the figures considered in Central Japan Railway Co.'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 CJPRY is an impressive value stock right now.
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Central Japan Railway Co. (CJPRY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
