Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Published 2 months ago Positive
Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

FMC Technologies (FTI)

Newcastle & Houston-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company, which reached its current form following the January 2017 merger between Technip and FMC Technologies, is engaged in the designing, producing and servicing technologically sophisticated systems and products for subsea, onshore/offshore, and surface projects. The company strives to enhance the performance of its oil and gas clients by bringing together the scope and know-how to transform the project economics.

FTI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Oil and Gas - Field Services industry's P/E of 15.9X, shares of FMC Technologies are trading at a forward P/E of 16.6X. FTI also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 1.5X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.04 to $2.12. FTI has an average earnings surprise of 32.3%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding FTI to their portfolios.

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

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