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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.
Aluminum Corp. of China Limited (ACH)
is a stock many investors are watching right now. ACH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.96 right now. For comparison, its industry sports an average P/E of 11.62. Over the past year, ACH’s Forward P/E has been as high as 20.85 and as low as 4.99, with a median of 8.94.
Finally, investors will want to recognize that ACH has a P/CF ratio of 3.66. 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. ACH’s P/CF compares to its industry’s average P/CF of 6.99. Within the past 12 months, ACH’s P/CF has been as high as 6.72 and as low as 3.07, with a median of 4.92.
If you’re looking for another solid Mining – Non Ferrous value stock, take a look at
Amerigo Resources (ARREF)
. ARREF is a # 2 (Buy) stock with a Value score of A.
Shares of Amerigo Resources are currently trading at a forward earnings multiple of 7.68 and a PEG ratio of 0.31 compared to its industry’s P/E and PEG ratios of 11.62 and 0.53, respectively.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
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