This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. For one, part of trading is being able to get in and out of a stock easily. The income number is listed on a company's Income Statement. The income number is listed on a company's Income Statement. See rankings and related performance below. Conventional wisdom also has it that if the yield on the stock market (S&P 500 for example) is lower that the yield on the 10 Yr., then stocks would be considered overvalued. Earnings estimate revisions are the most important factor influencing stocks prices. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. Above 1 means it assets are greater than its liabilities. A P/B of 2 means it's selling at 2 times its book value. Banks Are About To Send One Of The Most Important Messages In Years. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. So what's an investor to think about the airlines right now? Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year. View real-time stock prices and stock quotes for a full financial overview. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. This item is updated at 9 pm EST each day. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A P/B of 0.5 means its selling at half its book value. That's unusual for the airline business, where historically we've seen Chapter 11 bankruptcy protection filings, and occasional liquidations, whenever the economy went south. Investors should consider their investment objectives and risks carefully before investing. Of course, different industries will have different growth rates that are considered good. Zacks' proprietary data indicates that ZoomInfo Technologies Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the ZI shares relative to the market in the next few months.