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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 CNA Financial (CNA). CNA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.91. This compares to its industry's average Forward P/E of 22.77. CNA's Forward P/E has been as high as 11.66 and as low as 8.88, with a median of 10.27, all within the past year.
CNA is also sporting a PEG ratio of 1.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CNA's PEG compares to its industry's average PEG of 1.91. Over the past 52 weeks, CNA's PEG has been as high as 2.33 and as low as 1.78, with a median of 2.05.
We should also highlight that CNA has a P/B ratio of 1.17. 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 attractive against its industry's average P/B of 1.39. CNA's P/B has been as high as 1.43 and as low as 0.95, with a median of 1.22, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CNA has a P/S ratio of 0.85. This compares to its industry's average P/S of 0.88.
These are just a handful of the figures considered in CNA Financial'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 CNA is an impressive value stock right now.
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