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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Brighthouse Financial (BHF). BHF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.34. This compares to its industry’s average Forward P/E of 6.67. Over the last 12 months, BHF’s Forward P/E has been as high as 4 and as low as 2.85, with a median of 3.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock’s price with the company’s sales. This is a prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. BHF has a P/S ratio of 0.39. This compares to its industry’s average P/S of 0.83.
Finally, investors should note that BHF has a P/CF ratio of 4.41. 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. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 9.84. Within the past 12 months, BHF’s P/CF has been as high as 5.08 and as low as -13.33, with a median of -0.92.
These are only a few of the key metrics included in Brighthouse Financial’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, BHF looks like an impressive value stock at the moment.
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Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
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