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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Mobile TeleSystems PJSC (MBT) is a stock many investors are watching right now. MBT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MBT has a P/S ratio of 1.14. This compares to its industry’s average P/S of 1.18.
Finally, our model also underscores that MBT has a P/CF ratio of 2.95. 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. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 4.84. Over the past 52 weeks, MBT’s P/CF has been as high as 3.80 and as low as 2.89, with a median of 3.43.
Investors could also keep in mind TIM (TIMB), an Wireless Non-US stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
TIM is currently trading with a Forward P/E ratio of 16.22 while its PEG ratio sits at 1.02. Both of the company’s metrics compare favorably to its industry’s average P/E of 7.92 and average PEG ratio of 0.53.
Over the last 12 months, TIMB’s P/E has been as high as 21.59, as low as 12.51, with a median of 15.28, and its PEG ratio has been as high as 1.04, as low as 0.78, with a median of 0.93.
Additionally, TIM has a P/B ratio of 1.24 while its industry’s price-to-book ratio sits at 1.91. For TIMB, this valuation metric has been as high as 1.60, as low as 1.01, with a median of 1.26 over the past year.
These are just a handful of the figures considered in Mobile TeleSystems PJSC and TIM’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 MBT and TIMB is an impressive value stock right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.