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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.76, which compares to its industry's average of 27.12. Over the past year, ALL's Forward P/E has been as high as 12.14 and as low as 7.06, with a median of 10.73.
Investors should also note that ALL holds a PEG ratio of 1.30. 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. ALL's industry currently sports an average PEG of 3.30. Within the past year, ALL's PEG has been as high as 1.46 and as low as 0.85, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALL has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.84.
Finally, our model also underscores that ALL has a P/CF ratio of 7.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.10. Over the past 52 weeks, ALL's P/CF has been as high as 11.93 and as low as 4.27, with a median of 10.94.
These are just a handful of the figures considered in Allstate's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALL is an impressive value stock right now.
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Is Allstate (ALL) a Great Value Stock 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.76, which compares to its industry's average of 27.12. Over the past year, ALL's Forward P/E has been as high as 12.14 and as low as 7.06, with a median of 10.73.
Investors should also note that ALL holds a PEG ratio of 1.30. 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. ALL's industry currently sports an average PEG of 3.30. Within the past year, ALL's PEG has been as high as 1.46 and as low as 0.85, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALL has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.84.
Finally, our model also underscores that ALL has a P/CF ratio of 7.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.10. Over the past 52 weeks, ALL's P/CF has been as high as 11.93 and as low as 4.27, with a median of 10.94.
These are just a handful of the figures considered in Allstate's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALL is an impressive value stock right now.