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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Grupo Supervielle (SUPV). SUPV 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 9.33. This compares to its industry's average Forward P/E of 9.67. Over the past year, SUPV's Forward P/E has been as high as 12.16 and as low as 4.26, with a median of 7.27.
We should also highlight that SUPV has a P/B ratio of 1.65. 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. This stock's P/B looks solid versus its industry's average P/B of 1.89. Over the past year, SUPV's P/B has been as high as 2.09 and as low as 0.25, with a median of 0.88.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SUPV has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.32.
Finally, investors should note that SUPV has a P/CF ratio of 4. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SUPV's current P/CF looks attractive when compared to its industry's average P/CF of 15.19. SUPV's P/CF has been as high as 5.05 and as low as 1.04, with a median of 1.77, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Grupo Supervielle is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUPV feels like a great value stock at the moment.
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