W.While the time-tested Zacks Rank puts an emphasis on earnings estimates and valuation revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we’re always looking for value, growth, and dynamic trends to discover great companies.
Of these, value investing is one of the most popular methods for finding great stocks in any market environment. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.
Zacks developed the innovative Style Scores system to highlight stocks with certain characteristics. For example, value investors will be interested in stocks with good grades in the value category. Combined with a high Zacks rank, the “A” ratings in the Value category are some of the strongest value stocks on the market today.
One stock to watch out for is 360 DigiTech, Inc. Sponsored ADR (QFIN). QFIN currently has a Zacks rank of # 2 (Buy) and an A rating for Value.
We should also highlight that QFIN has a PER of 3.92. The P / B ratio is used to compare the market value of a stock to its book value, which is defined as total assets minus total liabilities. QFIN’s current P / B looks attractive compared to the industry’s average P / B of 7.56. Last year, QFIN’s P / E was 3.92 and 1.24 with a median of 1.90.
Value investors also frequently use the P / S ratio. This metric is determined by dividing the price of a stock by the company’s sales. Some people prefer this metric because sales on the income statement are harder to manipulate. This means it could be a more accurate performance indicator. QFIN has a P / S ratio of 3.04. That compares to the industry’s average P / S of 4.78.
These are just a handful of the numbers included in 360 DigiTech, Inc.’s great value score from Sponsored ADR. Still, they show that the stock is likely undervalued right now. Add that to the strength of its earnings outlook, and we can clearly see that QFIN is an impressive value stock right now.
Click here to get this free report
360 DigiTech, Inc. Sponsored ADR (QFIN): Free stock research report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.