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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Sun Country Airlines (SNCY) is a stock many investors are watching right now. SNCY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.51, while its industry has an average P/E of 16.37. Over the last 12 months, SNCY's Forward P/E has been as high as 12.09 and as low as 5.81, with a median of 7.62.
SNCY is also sporting a PEG ratio of 0.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNCY's PEG compares to its industry's average PEG of 0.82. Over the last 12 months, SNCY's PEG has been as high as 0.45 and as low as 0.26, with a median of 0.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Sun Country Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, SNCY sticks out at as one of the market's strongest value stocks.
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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.
