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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Fluor (FLR - Free Report) . FLR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.33, which compares to its industry's average of 20.10. Over the past year, FLR's Forward P/E has been as high as 36.03 and as low as 14.85, with a median of 18.29.
Investors will also notice that FLR has a PEG ratio of 0.61. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FLR's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, FLR's PEG has been as high as 1.44 and as low as 0.40, with a median of 0.59.
We should also highlight that FLR has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against 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 3.90. Over the past 12 months, FLR's P/B has been as high as 2.68 and as low as 1.84, with a median of 2.25.
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. FLR has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.6.
Finally, investors should note that FLR has a P/CF ratio of 19.64. 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. FLR's current P/CF looks attractive when compared to its industry's average P/CF of 21.49. FLR's P/CF has been as high as 25.02 and as low as -84.89, with a median of -48.68, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fluor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLR feels like a great value stock at the moment.
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Is Fluor (FLR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Fluor (FLR - Free Report) . FLR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.33, which compares to its industry's average of 20.10. Over the past year, FLR's Forward P/E has been as high as 36.03 and as low as 14.85, with a median of 18.29.
Investors will also notice that FLR has a PEG ratio of 0.61. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FLR's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, FLR's PEG has been as high as 1.44 and as low as 0.40, with a median of 0.59.
We should also highlight that FLR has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against 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 3.90. Over the past 12 months, FLR's P/B has been as high as 2.68 and as low as 1.84, with a median of 2.25.
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. FLR has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.6.
Finally, investors should note that FLR has a P/CF ratio of 19.64. 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. FLR's current P/CF looks attractive when compared to its industry's average P/CF of 21.49. FLR's P/CF has been as high as 25.02 and as low as -84.89, with a median of -48.68, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fluor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLR feels like a great value stock at the moment.