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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Oil States International (OIS). OIS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.88, which compares to its industry’s average of 13.88. OIS’s Forward P/E has been as high as 28.91 and as low as 10.41, with a median of 14.44, all within the past year.

Investors should also recognize that OIS has a P/B ratio of 0.50. 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 attractive against its industry’s average P/B of 1.21. Within the past 52 weeks, OIS’s P/B has been as high as 0.60 and as low as 0.37, with a median of 0.46.

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. OIS has a P/S ratio of 0.47. This compares to its industry’s average P/S of 1.21.

These are only a few of the key metrics included in Oil States International’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, OIS looks like an impressive value stock at the moment.

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Oil States International, Inc. (OIS) : Free Stock Analysis Report

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

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