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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is WPP (WPP - Free Report) . WPP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.73 right now. For comparison, its industry sports an average P/E of 9.25. Over the last 12 months, WPP's Forward P/E has been as high as 10.65 and as low as 7.19, with a median of 8.84.
We should also highlight that WPP has a P/B ratio of 2.35. The P/B ratio pits a stock's market value against 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 5.19. WPP's P/B has been as high as 2.64 and as low as 1.65, with a median of 2.12, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that WPP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WPP feels like a great value stock at the moment.
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Is WPP (WPP) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is WPP (WPP - Free Report) . WPP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.73 right now. For comparison, its industry sports an average P/E of 9.25. Over the last 12 months, WPP's Forward P/E has been as high as 10.65 and as low as 7.19, with a median of 8.84.
We should also highlight that WPP has a P/B ratio of 2.35. The P/B ratio pits a stock's market value against 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 5.19. WPP's P/B has been as high as 2.64 and as low as 1.65, with a median of 2.12, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that WPP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WPP feels like a great value stock at the moment.