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.
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.
Golden Entertainment (GDEN) is a stock many investors are watching right now. GDEN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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. GDEN has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.35.
Finally, investors will want to recognize that GDEN has a P/CF ratio of 7.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GDEN's P/CF compares to its industry's average P/CF of 28.83. GDEN's P/CF has been as high as 7.70 and as low as 2.28, with a median of 2.82, all within the past year.
Investors could also keep in mind Playtika (PLTK), an Gaming stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Playtika is currently trading with a Forward P/E ratio of 10 while its PEG ratio sits at 1.68. Both of the company's metrics compare favorably to its industry's average P/E of 28.77 and average PEG ratio of 1.07.
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Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report
Playtika Holding Corp. (PLTK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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