Value stocks

Are these business services actions currently high value actions?

HBefore Zacks, we focus on our proven ranking system, which emphasizes earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly reviewing the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more popular than value investing. This strategy simply seeks to identify companies that are undervalued by the market at large. Value investors use proven metrics and fundamental analysis to find companies they believe are undervalued at their current stock price level.

Zacks developed the innovative Style Scores system to highlight stocks with specific characteristics. For example, value investors will be interested in stocks with good ratings in the “Value” category. When paired with a high Zacks ranking, “A” ratings in the Value category are some of the strongest value stocks on the market today.

One stock to watch is Randstad Holding (RANJY). RANJY currently sports a Zacks rank of # 2 (buy), as well as an A value rating. The stock has a futures P / E ratio of 12.49. This compares to its industry’s average term P / E of 15.87. RANJY’s futures P / E hit 18.37 and as low as 11.57, with a median of 15.12, all in the past year.

Investors should also recognize that RANJY has a P / N ratio of 2.28. The P / B ratio pits the market value of a stock against its book value, which is defined as total assets minus total liabilities. RANJY’s current P / B looks attractive compared to its industry average P / B of 3.41. Over the past 12 months, RANJY’s P / B has been as high as 2.86 and as low as 2.09, with a median of 2.46.

Value investors also frequently use the P / S ratio. This measure is obtained by dividing the price of a stock by the income of the company. This is a preferred metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. RANJY has a P / S ratio of 0.44. This compares to its industry’s average P / S of 0.84.

Finally, investors should note that RANJY has a P / CF ratio of 12.03. This data point takes into account a company’s operating cash flow and is frequently used to find undervalued companies given their strong cash flow outlook. This company’s current P / CF looks strong compared to its industry average P / CF of 22.64. RANJY’s P / CF has been as high as 19.05 and as low as 11.05, with a median of 14.91, all in the past year.

If you’re looking for another solid stock of value for recruiting firms, take a look at SThree (STREF). STREF is a stock # 2 (Buy) with a value score of A.

SThree also has a P / B ratio of 2.37; this compares to its industry’s price-to-book ratio of 3.41. Over the past 52 weeks, STREF’s P / B has been as high as 2.69, as low as 2.37, with a median of 2.37.

These numbers are just a few of the value indicators that investors tend to watch, but they help show that Randstad Holding and SThree are likely undervalued right now. Given that, along with its strong earnings outlook, RANJY and STREF currently feel like high value stocks.

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Randstad Holding NV (RANJY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.