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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is CDW (CDW - Free Report) . CDW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.91, while its industry has an average P/E of 30.69. Over the past 52 weeks, CDW's Forward P/E has been as high as 19.02 and as low as 13.89, with a median of 16.20.
Investors should also recognize that CDW has a P/B ratio of 12.66. 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 13.41. Within the past 52 weeks, CDW's P/B has been as high as 13.52 and as low as 10.34, with a median of 12.07.
Finally, our model also underscores that CDW has a P/CF ratio of 15.47. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.85. Over the past year, CDW's P/CF has been as high as 15.79 and as low as 12.26, with a median of 14.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CDW is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CDW feels like a great value stock at the moment.
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Is CDW (CDW) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is CDW (CDW - Free Report) . CDW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.91, while its industry has an average P/E of 30.69. Over the past 52 weeks, CDW's Forward P/E has been as high as 19.02 and as low as 13.89, with a median of 16.20.
Investors should also recognize that CDW has a P/B ratio of 12.66. 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 13.41. Within the past 52 weeks, CDW's P/B has been as high as 13.52 and as low as 10.34, with a median of 12.07.
Finally, our model also underscores that CDW has a P/CF ratio of 15.47. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.85. Over the past year, CDW's P/CF has been as high as 15.79 and as low as 12.26, with a median of 14.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CDW is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CDW feels like a great value stock at the moment.