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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Leggett & Platt (LEG). LEG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that LEG has a P/B ratio of 1.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.71. Over the past 12 months, LEG's P/B has been as high as 2.83 and as low as 1.18, with a median of 1.70.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LEG has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.49.

Finally, investors will want to recognize that LEG has a P/CF ratio of 4.78. 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 7.43. Within the past 12 months, LEG's P/CF has been as high as 61.65 and as low as 3.05, with a median of 4.80.

These are only a few of the key metrics included in Leggett & Platt'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, LEG looks like an impressive value stock at the moment.

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Leggett & Platt, Incorporated (LEG): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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