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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.
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.
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.
One company value investors might notice is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.04, while its industry has an average P/E of 10.98. Over the last 12 months, JBL's Forward P/E has been as high as 10.56 and as low as 6.46, with a median of 7.86.
JBL is also sporting a PEG ratio of 0.67. 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. JBL's PEG compares to its industry's average PEG of 0.75. Over the past 52 weeks, JBL's PEG has been as high as 0.88 and as low as 0.54, with a median of 0.65.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JBL has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.34.
Finally, investors will want to recognize that JBL has a P/CF ratio of 4.96. 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 5.66. Over the past 52 weeks, JBL's P/CF has been as high as 6.30 and as low as 3.90, with a median of 4.75.
Another great Electronics - Manufacturing Services stock you could consider is Sanmina (SANM - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Sanmina is currently trading with a Forward P/E ratio of 10.13 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.98 and average PEG ratio of 0.75.
Over the past year, SANM's P/E has been as high as 14.03, as low as 8.52, with a median of 9.70; its PEG ratio has been as high as 1.17, as low as 0.71, with a median of 0.65 during the same time period.
Additionally, Sanmina has a P/B ratio of 1.78 while its industry's price-to-book ratio sits at 2.58. For SANM, this valuation metric has been as high as 2.13, as low as 1.21, with a median of 1.43 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil and Sanmina are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL and SANM feels like a great value stock at the moment.
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Are Investors Undervaluing Jabil (JBL) 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.
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.
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.
One company value investors might notice is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.04, while its industry has an average P/E of 10.98. Over the last 12 months, JBL's Forward P/E has been as high as 10.56 and as low as 6.46, with a median of 7.86.
JBL is also sporting a PEG ratio of 0.67. 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. JBL's PEG compares to its industry's average PEG of 0.75. Over the past 52 weeks, JBL's PEG has been as high as 0.88 and as low as 0.54, with a median of 0.65.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JBL has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.34.
Finally, investors will want to recognize that JBL has a P/CF ratio of 4.96. 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 5.66. Over the past 52 weeks, JBL's P/CF has been as high as 6.30 and as low as 3.90, with a median of 4.75.
Another great Electronics - Manufacturing Services stock you could consider is Sanmina (SANM - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Sanmina is currently trading with a Forward P/E ratio of 10.13 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.98 and average PEG ratio of 0.75.
Over the past year, SANM's P/E has been as high as 14.03, as low as 8.52, with a median of 9.70; its PEG ratio has been as high as 1.17, as low as 0.71, with a median of 0.65 during the same time period.
Additionally, Sanmina has a P/B ratio of 1.78 while its industry's price-to-book ratio sits at 2.58. For SANM, this valuation metric has been as high as 2.13, as low as 1.21, with a median of 1.43 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil and Sanmina are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL and SANM feels like a great value stock at the moment.