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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 Trustmark (TRMK). TRMK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is TRMK's P/B ratio of 1.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. TRMK's P/B has been as high as 1.26 and as low as 1.02, with a median of 1.14, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TRMK has a P/S ratio of 2.67. This compares to its industry's average P/S of 3.07.
Finally, our model also underscores that TRMK has a P/CF ratio of 9.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.17. Within the past 12 months, TRMK's P/CF has been as high as 10.28 and as low as 6.84, with a median of 8.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Trustmark is likely undervalued currently. And when considering the strength of its earnings outlook, TRMK sticks out at as one of the market's strongest value stocks.
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Trustmark Corporation (TRMK) : Free Stock Analysis Report
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