We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is TransAlta (TAC - Free Report) . TAC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.78, which compares to its industry's average of 13.85. TAC's Forward P/E has been as high as 17.65 and as low as 4.46, with a median of 11.86, all within the past year.
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. TAC has a P/S ratio of 0.93. This compares to its industry's average P/S of 2.
Vistra (VST - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. VST is a # 2 (Buy) stock with a Value grade of A.
Vistra is currently trading with a Forward P/E ratio of 12.53 while its PEG ratio sits at 0.95. Both of the company's metrics compare favorably to its industry's average P/E of 13.85 and average PEG ratio of 1.86.
VST's Forward P/E has been as high as 27.95 and as low as 7.51, with a median of 9.29. During the same time period, its PEG ratio has been as high as 0.99, as low as 0.84, with a median of 0.94.
Vistra sports a P/B ratio of 5.14 as well; this compares to its industry's price-to-book ratio of 2.43. In the past 52 weeks, VST's P/B has been as high as 8.95, as low as 3.06, with a median of 4.95.
These are only a few of the key metrics included in TransAlta and Vistra strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TAC and VST look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy TransAlta (TAC) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is TransAlta (TAC - Free Report) . TAC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.78, which compares to its industry's average of 13.85. TAC's Forward P/E has been as high as 17.65 and as low as 4.46, with a median of 11.86, all within the past year.
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. TAC has a P/S ratio of 0.93. This compares to its industry's average P/S of 2.
Vistra (VST - Free Report) may be another strong Utility - Electric Power stock to add to your shortlist. VST is a # 2 (Buy) stock with a Value grade of A.
Vistra is currently trading with a Forward P/E ratio of 12.53 while its PEG ratio sits at 0.95. Both of the company's metrics compare favorably to its industry's average P/E of 13.85 and average PEG ratio of 1.86.
VST's Forward P/E has been as high as 27.95 and as low as 7.51, with a median of 9.29. During the same time period, its PEG ratio has been as high as 0.99, as low as 0.84, with a median of 0.94.
Vistra sports a P/B ratio of 5.14 as well; this compares to its industry's price-to-book ratio of 2.43. In the past 52 weeks, VST's P/B has been as high as 8.95, as low as 3.06, with a median of 4.95.
These are only a few of the key metrics included in TransAlta and Vistra strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TAC and VST look like an impressive value stock at the moment.