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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Kubota (KUBTY). KUBTY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.20, while its industry has an average P/E of 12.57. Over the last 12 months, KUBTY's Forward P/E has been as high as 14.72 and as low as 10.79, with a median of 13.30.
Investors will also notice that KUBTY 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. KUBTY's PEG compares to its industry's average PEG of 1.20. Within the past year, KUBTY's PEG has been as high as 1.38 and as low as 0.71, with a median of 1.21.
Finally, our model also underscores that KUBTY has a P/CF ratio of 5.71. 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. KUBTY's P/CF compares to its industry's average P/CF of 17.95. Over the past 52 weeks, KUBTY's P/CF has been as high as 9.44 and as low as 5.67, with a median of 6.23.
These are just a handful of the figures considered in Kubota'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 KUBTY is an impressive value stock right now.
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Kubota Corp. (KUBTY) : Free Stock Analysis Report