Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Nexa Resources (NEXA). NEXA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
Investors will also notice that NEXA has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NEXA's PEG compares to its industry's average PEG of 0.82. NEXA's PEG has been as high as 0.76 and as low as 0.11, with a median of 0.39, all within the past year.
Investors should also recognize that NEXA has a P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NEXA's current P/B looks attractive when compared to its industry's average P/B of 1.57. Over the past 12 months, NEXA's P/B has been as high as 1.10 and as low as 0.55, with a median of 0.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Nexa Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NEXA feels like a great value stock at the moment.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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