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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, 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.
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 CDW (CDW - Free Report) . CDW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.90, while its industry has an average P/E of 25.91. Over the last 12 months, CDW's Forward P/E has been as high as 19.02 and as low as 13.89, with a median of 16.19.
Another valuation metric that we should highlight is CDW's P/B ratio of 11.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.49. Over the past 12 months, CDW's P/B has been as high as 13.52 and as low as 10.34, with a median of 12.05.
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. CDW has a P/S ratio of 0.76. This compares to its industry's average P/S of 2.24.
Finally, our model also underscores that CDW has a P/CF ratio of 13.78. 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. CDW's P/CF compares to its industry's average P/CF of 35.93. Over the past 52 weeks, CDW's P/CF has been as high as 15.79 and as low as 12.26, with a median of 14.74.
These are just a handful of the figures considered in CDW'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 CDW is an impressive value stock right now.
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Is CDW (CDW) Stock Undervalued Right Now?
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, 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.
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 CDW (CDW - Free Report) . CDW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.90, while its industry has an average P/E of 25.91. Over the last 12 months, CDW's Forward P/E has been as high as 19.02 and as low as 13.89, with a median of 16.19.
Another valuation metric that we should highlight is CDW's P/B ratio of 11.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.49. Over the past 12 months, CDW's P/B has been as high as 13.52 and as low as 10.34, with a median of 12.05.
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. CDW has a P/S ratio of 0.76. This compares to its industry's average P/S of 2.24.
Finally, our model also underscores that CDW has a P/CF ratio of 13.78. 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. CDW's P/CF compares to its industry's average P/CF of 35.93. Over the past 52 weeks, CDW's P/CF has been as high as 15.79 and as low as 12.26, with a median of 14.74.
These are just a handful of the figures considered in CDW'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 CDW is an impressive value stock right now.