How To Find Value Stocks Using The P/B Ratio

Video Length: 00:07:11

There are several ways to “find” the best value stocks. Many investors simply use the price-to-earnings ratio, or P/E. But there are other fundamentals investors can also use, including the price-to-book (“P/B”) ratio.
 
Tracey Ryniec, Stock Strategist at Zacks Investment Research, explains why the P/B ratio is a good criteria to use to find value and how investors can use it to find great value stocks. She then used a low P/B ratio and looked for stocks that were Zacks Rank Buys to find the top value stocks.  
 
Carnival Corporation (CCL – Analyst Report), the largest cruise company in the world, fit the bill with a P/B ratio of just 1.29. It recently reported fourth quarter earnings and was bullish on the 2016 outlook as advance bookings for the first three quarters of the new year were well ahead of the year before. Low fuel prices have also been boosting the bottom line. 
 
Consumers are feeling good and when they feel good they want to travel. Analysts expect Carnival to grow earnings by the double digits in 2016. 

But what other value fundamentals will investors find in Carnival?