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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Janus Henderson Group (JHG). JHG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.08 right now. For comparison, its industry sports an average P/E of 21.20. JHG's Forward P/E has been as high as 12.81 and as low as 10.08, with a median of 11.32, all within the past year.
Investors should also note that JHG holds a PEG ratio of 0.53. 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. JHG's PEG compares to its industry's average PEG of 1.20. Over the past 52 weeks, JHG's PEG has been as high as 3.68 and as low as 0.52, with a median of 0.94.
Another notable valuation metric for JHG is its P/B ratio of 1.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. JHG's current P/B looks attractive when compared to its industry's average P/B of 4.22. Over the past year, JHG's P/B has been as high as 1.57 and as low as 1.04, with a median of 1.23.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JHG has a P/S ratio of 2.9. This compares to its industry's average P/S of 3.35.
Finally, investors should note that JHG has a P/CF ratio of 15.38. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JHG's P/CF compares to its industry's average P/CF of 36.53. Within the past 12 months, JHG's P/CF has been as high as 16.46 and as low as 10.52, with a median of 11.68.
These are just a handful of the figures considered in Janus Henderson Group'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 JHG is an impressive value stock right now.
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