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Is CSG Systems (CSGS) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is CSG Systems (CSGS - Free Report) . CSGS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.14 right now. For comparison, its industry sports an average P/E of 15.76. Over the last 12 months, CSGS's Forward P/E has been as high as 17.51 and as low as 10.14, with a median of 13.96.

Finally, we should also recognize that CSGS has a P/CF ratio of 8.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CSGS's P/CF compares to its industry's average P/CF of 11.02. Over the past year, CSGS's P/CF has been as high as 14.95 and as low as 8.76, with a median of 12.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CSG Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSGS feels like a great value stock at the moment.


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