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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.54 right now. For comparison, its industry sports an average P/E of 14.99. Over the past 52 weeks, FLEX's Forward P/E has been as high as 11.41 and as low as 8.10, with a median of 9.78.
We also note that FLEX holds a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FLEX's industry has an average PEG of 1.71 right now. Within the past year, FLEX's PEG has been as high as 1.09 and as low as 0.59, with a median of 0.77.
Another valuation metric that we should highlight is FLEX's P/B ratio of 1.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.91. Over the past 12 months, FLEX's P/B has been as high as 2.51 and as low as 1.56, with a median of 2.11.
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. FLEX has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.81.
Finally, investors will want to recognize that FLEX has a P/CF ratio of 8.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FLEX's P/CF compares to its industry's average P/CF of 12.57. Over the past year, FLEX's P/CF has been as high as 10.08 and as low as 6.48, with a median of 8.37.
These are only a few of the key metrics included in Flex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLEX looks like an impressive value stock at the moment.
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Should Value Investors Buy Flex (FLEX) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.54 right now. For comparison, its industry sports an average P/E of 14.99. Over the past 52 weeks, FLEX's Forward P/E has been as high as 11.41 and as low as 8.10, with a median of 9.78.
We also note that FLEX holds a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FLEX's industry has an average PEG of 1.71 right now. Within the past year, FLEX's PEG has been as high as 1.09 and as low as 0.59, with a median of 0.77.
Another valuation metric that we should highlight is FLEX's P/B ratio of 1.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.91. Over the past 12 months, FLEX's P/B has been as high as 2.51 and as low as 1.56, with a median of 2.11.
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. FLEX has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.81.
Finally, investors will want to recognize that FLEX has a P/CF ratio of 8.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FLEX's P/CF compares to its industry's average P/CF of 12.57. Over the past year, FLEX's P/CF has been as high as 10.08 and as low as 6.48, with a median of 8.37.
These are only a few of the key metrics included in Flex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLEX looks like an impressive value stock at the moment.