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, 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Ramaco Resources (METC). METC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.46 right now. For comparison, its industry sports an average P/E of 9.36. Over the past 52 weeks, METC's Forward P/E has been as high as 10.90 and as low as 4.39, with a median of 6.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. METC has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Ramaco Resources is likely undervalued currently. And when considering the strength of its earnings outlook, METC sticks out at as one of the market's strongest value stocks.
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Ramaco Resources, Inc. (METC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
