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Is NETGEAR, Inc. (NTGR) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 NETGEAR, Inc. (NTGR - Free Report) . NTGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.14, while its industry has an average P/E of 16.27. NTGR's Forward P/E has been as high as 18.53 and as low as 10.05, with a median of 13.23, all within the past year.
Another notable valuation metric for NTGR is its P/B ratio of 1.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.95. Over the past 12 months, NTGR's P/B has been as high as 1.99 and as low as 0.93, with a median of 1.52.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NTGR has a P/S ratio of 1. This compares to its industry's average P/S of 1.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NETGEAR, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NTGR feels like a great value stock at the moment.
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Is NETGEAR, Inc. (NTGR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 NETGEAR, Inc. (NTGR - Free Report) . NTGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.14, while its industry has an average P/E of 16.27. NTGR's Forward P/E has been as high as 18.53 and as low as 10.05, with a median of 13.23, all within the past year.
Another notable valuation metric for NTGR is its P/B ratio of 1.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.95. Over the past 12 months, NTGR's P/B has been as high as 1.99 and as low as 0.93, with a median of 1.52.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NTGR has a P/S ratio of 1. This compares to its industry's average P/S of 1.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NETGEAR, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NTGR feels like a great value stock at the moment.