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Is CSG Systems (CSGS) Stock Undervalued Right Now?

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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.

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 to watch right now is CSG Systems (CSGS - Free Report) . CSGS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.74, while its industry has an average P/E of 18.16. Over the last 12 months, CSGS's Forward P/E has been as high as 17.51 and as low as 11.02, with a median of 14.28.

Finally, our model also underscores that CSGS has a P/CF ratio of 10.10. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.85. Within the past 12 months, CSGS's P/CF has been as high as 14.95 and as low as 9.23, with a median of 13.45.

Value investors will likely look at more than just these metrics, but the above data helps show that CSG Systems is likely undervalued currently. And when considering the strength of its earnings outlook, CSGS sticks out at as one of the market's strongest value stocks.


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