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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, 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 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 value investors might notice is Terex (TEX - Free Report) . TEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.47, which compares to its industry's average of 15.75. TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.38, all within the past year.
We also note that TEX holds a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TEX's industry currently sports an average PEG of 1.14. TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46, all within the past year.
Another notable valuation metric for TEX is its P/B ratio of 2.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.40. TEX's P/B has been as high as 3.17 and as low as 1.73, with a median of 2.28, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TEX has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.85.
Finally, investors should note that TEX has a P/CF ratio of 8.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TEX's P/CF has been as high as 14.64 and as low as 5.62, with a median of 7.63.
These are only a few of the key metrics included in Terex'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, TEX looks like an impressive value stock at the moment.
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Are Investors Undervaluing Terex (TEX) Right Now?
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, 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 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 value investors might notice is Terex (TEX - Free Report) . TEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.47, which compares to its industry's average of 15.75. TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.38, all within the past year.
We also note that TEX holds a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TEX's industry currently sports an average PEG of 1.14. TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46, all within the past year.
Another notable valuation metric for TEX is its P/B ratio of 2.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.40. TEX's P/B has been as high as 3.17 and as low as 1.73, with a median of 2.28, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TEX has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.85.
Finally, investors should note that TEX has a P/CF ratio of 8.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TEX's P/CF has been as high as 14.64 and as low as 5.62, with a median of 7.63.
These are only a few of the key metrics included in Terex'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, TEX looks like an impressive value stock at the moment.