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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company value investors might notice is Seagate (STX - Free Report) . STX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.15. This compares to its industry's average Forward P/E of 10.16. Over the last 12 months, STX's Forward P/E has been as high as 12.45 and as low as 7.89, with a median of 10.27.
Investors should also note that STX holds a PEG ratio of 0.61. 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. STX's industry has an average PEG of 0.67 right now. Within the past year, STX's PEG has been as high as 0.80 and as low as 0.47, with a median of 0.57.
Finally, our model also underscores that STX has a P/CF ratio of 8.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. STX's P/CF compares to its industry's average P/CF of 10.58. Over the past 52 weeks, STX's P/CF has been as high as 13.28 and as low as 6.04, with a median of 9.62.
These are only a few of the key metrics included in Seagate'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, STX looks like an impressive value stock at the moment.
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Is Seagate (STX) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company value investors might notice is Seagate (STX - Free Report) . STX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.15. This compares to its industry's average Forward P/E of 10.16. Over the last 12 months, STX's Forward P/E has been as high as 12.45 and as low as 7.89, with a median of 10.27.
Investors should also note that STX holds a PEG ratio of 0.61. 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. STX's industry has an average PEG of 0.67 right now. Within the past year, STX's PEG has been as high as 0.80 and as low as 0.47, with a median of 0.57.
Finally, our model also underscores that STX has a P/CF ratio of 8.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. STX's P/CF compares to its industry's average P/CF of 10.58. Over the past 52 weeks, STX's P/CF has been as high as 13.28 and as low as 6.04, with a median of 9.62.
These are only a few of the key metrics included in Seagate'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, STX looks like an impressive value stock at the moment.