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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Elbit Systems . ESLT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.38, which compares to its industry's average of 20.40. ESLT's Forward P/E has been as high as 21.10 and as low as 14.95, with a median of 16.90, all within the past year.
Another valuation metric that we should highlight is ESLT's P/B ratio of 2.80. 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 5.04. Over the past 12 months, ESLT's P/B has been as high as 3.59 and as low as 2.29, with a median of 3.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Elbit Systems is likely undervalued currently. And when considering the strength of its earnings outlook, ESLT sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Is Elbit Systems (ESLT) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Elbit Systems . ESLT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.38, which compares to its industry's average of 20.40. ESLT's Forward P/E has been as high as 21.10 and as low as 14.95, with a median of 16.90, all within the past year.
Another valuation metric that we should highlight is ESLT's P/B ratio of 2.80. 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 5.04. Over the past 12 months, ESLT's P/B has been as high as 3.59 and as low as 2.29, with a median of 3.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Elbit Systems is likely undervalued currently. And when considering the strength of its earnings outlook, ESLT sticks out at as one of the market's strongest value stocks.