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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Computer Programs and Systems is a stock many investors are watching right now. CPSI 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 11, which compares to its industry's average of 27.88. Over the past year, CPSI's Forward P/E has been as high as 18.79 and as low as 11, with a median of 14.13.
CPSI is also sporting a PEG ratio of 1.06. 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. CPSI's PEG compares to its industry's average PEG of 2. Within the past year, CPSI's PEG has been as high as 1.76 and as low as 1.06, with a median of 1.32.
We should also highlight that CPSI has a P/B ratio of 2.26. Investors use the P/B ratio to look at a stock's market value versus 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 2.50. Within the past 52 weeks, CPSI's P/B has been as high as 3.35 and as low as 2.26, with a median of 2.95.
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. CPSI has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.86.
These are only a few of the key metrics included in Computer Programs and Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CPSI looks like an impressive value stock at the moment.
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Is Computer Programs and Systems (CPSI) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Computer Programs and Systems is a stock many investors are watching right now. CPSI 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 11, which compares to its industry's average of 27.88. Over the past year, CPSI's Forward P/E has been as high as 18.79 and as low as 11, with a median of 14.13.
CPSI is also sporting a PEG ratio of 1.06. 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. CPSI's PEG compares to its industry's average PEG of 2. Within the past year, CPSI's PEG has been as high as 1.76 and as low as 1.06, with a median of 1.32.
We should also highlight that CPSI has a P/B ratio of 2.26. Investors use the P/B ratio to look at a stock's market value versus 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 2.50. Within the past 52 weeks, CPSI's P/B has been as high as 3.35 and as low as 2.26, with a median of 2.95.
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. CPSI has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.86.
These are only a few of the key metrics included in Computer Programs and Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CPSI looks like an impressive value stock at the moment.