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Should Value Investors Buy Vontier Corporation (VNT) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Vontier Corporation (VNT - Free Report) . VNT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that VNT holds a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VNT's PEG compares to its industry's average PEG of 3.86. Over the last 12 months, VNT's PEG has been as high as 11.37 and as low as 1.43, with a median of 4.13.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VNT has a P/S ratio of 1.87. This compares to its industry's average P/S of 4.01.

These are just a handful of the figures considered in Vontier Corporation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VNT is an impressive value stock right now.


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