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Is inTest (INTT) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

inTest (INTT - Free Report) is a stock many investors are watching right now. INTT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.42, which compares to its industry's average of 17.83. Over the past 52 weeks, INTT's Forward P/E has been as high as 13.40 and as low as 6.42, with a median of 9.67.

Investors should also note that INTT holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INTT's PEG compares to its industry's average PEG of 1.34. Over the last 12 months, INTT's PEG has been as high as 1.34 and as low as 0.64, with a median of 0.97.

Investors should also recognize that INTT has a P/B ratio of 1.50. 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 attractive against its industry's average P/B of 3.27. Within the past 52 weeks, INTT's P/B has been as high as 2.47 and as low as 1.50, with a median of 1.93.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INTT has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.21.

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


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