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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One stock to keep an eye on is Sleep Number (SNBR). SNBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.80, which compares to its industry’s average of 18.82. Over the last 12 months, SNBR’s Forward P/E has been as high as 28.15 and as low as 13.78, with a median of 18.39.
Finally, our model also underscores that SNBR has a P/CF ratio of 12.68. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SNBR’s P/CF compares to its industry’s average P/CF of 18.61. Over the past 52 weeks, SNBR’s P/CF has been as high as 20.54 and as low as 5.71, with a median of 12.01.
These are only a few of the key metrics included in Sleep Number’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNBR looks like an impressive value stock at the moment.