This story originally appeared on Zacks
Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Fanhua Inc. FANH.
Fanhua in Focus
FANH may be an interesting play thanks to its forward PE of 8, its P/S ratio of 0.8, and its decent dividend yield of 8%. These factors suggest that Fanhua is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that FANH has decent revenue metrics to back up its earnings.
But before you think that Fanhua is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 3.4% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.
This estimate strength is actually enough to push FANH to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So really, Fanhua is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fanhua Inc. (FANH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research