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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Bristol-Myers Squibb (BMY) is a stock many investors are watching right now. BMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.43, while its industry has an average P/E of 16.39. BMY's Forward P/E has been as high as 14.36 and as low as 9.22, with a median of 10.69, all within the past year.
BMY is also sporting a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BMY's PEG compares to its industry's average PEG of 2.13. Within the past year, BMY's PEG has been as high as 2.48 and as low as 0.84, with a median of 2.01.
Another notable valuation metric for BMY is its P/B ratio of 6.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.84. Within the past 52 weeks, BMY's P/B has been as high as 6.22 and as low as 4.33, with a median of 5.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bristol-Myers Squibb is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMY feels like a great value stock at the moment.
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