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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Smart Sand (SND). SND is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.47. This compares to its industry's average Forward P/E of 12.86. Over the past 52 weeks, SND's Forward P/E has been as high as 41.69 and as low as -5,657.50, with a median of 17.16.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SND has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that SND has a P/CF ratio of 2.90. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.97. Within the past 12 months, SND's P/CF has been as high as 3.28 and as low as 1.76, with a median of 2.28.
These are only a few of the key metrics included in Smart Sand's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SND looks like an impressive value stock at the moment.
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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.
