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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Halfords Group Plc (HLFDY). HLFDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.26, while its industry has an average P/E of 14.02. Over the past year, HLFDY's Forward P/E has been as high as 78.15 and as low as 4.85, with a median of 7.91.
Another notable valuation metric for HLFDY is its P/B ratio of 1.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.76. HLFDY's P/B has been as high as 1.31 and as low as 0.43, with a median of 0.91, over the past year.
These are only a few of the key metrics included in Halfords Group Plc's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HLFDY looks like an impressive value stock at the moment.
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Halfords Group Plc (HLFDY) : Free Stock Analysis Report
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