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Should Value Investors Buy Super Micro Computer (SMCI) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Super Micro Computer (SMCI - Free Report) . SMCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.77 right now. For comparison, its industry sports an average P/E of 10.62. SMCI's Forward P/E has been as high as 14.02 and as low as 6.54, with a median of 10.77, all within the past year.
Investors should also note that SMCI holds a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SMCI's PEG compares to its industry's average PEG of 0.69. SMCI's PEG has been as high as 1.07 and as low as 0.50, with a median of 0.80, all within the past year.
Finally, investors should note that SMCI has a P/CF ratio of 9.97. 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. SMCI's current P/CF looks attractive when compared to its industry's average P/CF of 11.42. Over the past 52 weeks, SMCI's P/CF has been as high as 16.73 and as low as 9.52, with a median of 13.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Super Micro Computer is likely undervalued currently. And when considering the strength of its earnings outlook, SMCI sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Super Micro Computer (SMCI) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Super Micro Computer (SMCI - Free Report) . SMCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.77 right now. For comparison, its industry sports an average P/E of 10.62. SMCI's Forward P/E has been as high as 14.02 and as low as 6.54, with a median of 10.77, all within the past year.
Investors should also note that SMCI holds a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SMCI's PEG compares to its industry's average PEG of 0.69. SMCI's PEG has been as high as 1.07 and as low as 0.50, with a median of 0.80, all within the past year.
Finally, investors should note that SMCI has a P/CF ratio of 9.97. 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. SMCI's current P/CF looks attractive when compared to its industry's average P/CF of 11.42. Over the past 52 weeks, SMCI's P/CF has been as high as 16.73 and as low as 9.52, with a median of 13.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Super Micro Computer is likely undervalued currently. And when considering the strength of its earnings outlook, SMCI sticks out at as one of the market's strongest value stocks.