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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is KornFerry International (KFY). KFY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.53 right now. For comparison, its industry sports an average P/E of 17.24. Over the past 52 weeks, KFY's Forward P/E has been as high as 15.62 and as low as 11.30, with a median of 13.71.
Another notable valuation metric for KFY is its P/B ratio of 2.01. 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 2.03. Over the past year, KFY's P/B has been as high as 2.32 and as low as 1.70, with a median of 2.00.
Finally, we should also recognize that KFY has a P/CF ratio of 11.47. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 23.55. Over the past year, KFY's P/CF has been as high as 15.12 and as low as 9.53, with a median of 11.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KornFerry International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KFY feels like a great value stock at the moment.
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This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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