Back to top

Image: Bigstock

Is Orix Corp Ads (IX) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Orix Corp Ads (IX - Free Report) . IX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.51. This compares to its industry's average Forward P/E of 11.42. Over the past year, IX's Forward P/E has been as high as 10.37 and as low as 7.12, with a median of 8.69.

Investors should also note that IX holds a PEG ratio of 0.30. 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. IX's PEG compares to its industry's average PEG of 0.72. Over the past 52 weeks, IX's PEG has been as high as 3.61 and as low as 0.29, with a median of 0.59.

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. IX has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.14.

Finally, investors will want to recognize that IX has a P/CF ratio of 4.15. 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. IX's P/CF compares to its industry's average P/CF of 15.88. Over the past 52 weeks, IX's P/CF has been as high as 5.14 and as low as 3.93, with a median of 4.55.

Virtu Financial (VIRT - Free Report) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. VIRT is a # 2 (Buy) stock with a Value grade of A.

Virtu Financial sports a P/B ratio of 3.28 as well; this compares to its industry's price-to-book ratio of 3.74. In the past 52 weeks, VIRT's P/B has been as high as 3.69, as low as 2.30, with a median of 2.79.

These are just a handful of the figures considered in Orix Corp Ads and Virtu Financial'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 IX and VIRT is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Orix Corp Ads (IX) - free report >>

Virtu Financial, Inc. (VIRT) - free report >>

Published in