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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Melco Resorts & Entertainment Limited (MLCO). MLCO is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.05. This compares to its industry’s average Forward P/E of 33.61. Over the past year, MLCO’s Forward P/E has been as high as 38.28 and as low as 13.21, with a median of 18.39.
Investors will also notice that MLCO has a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. MLCO’s PEG compares to its industry’s average PEG of 1.28. Within the past year, MLCO’s PEG has been as high as 1.11 and as low as 0.38, with a median of 0.49.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MLCO has a P/S ratio of 0.81. This compares to its industry’s average P/S of 1.51.
These are just a handful of the figures considered in Melco Resorts & Entertainment Limited’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 MLCO is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Melco Resorts & Entertainment Limited (MLCO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source ca.finance.yahoo.com ’
