Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Tech Data . TECD 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 8.12, which compares to its industry's average of 8.59. Over the past year, TECD's Forward P/E has been as high as 11.06 and as low as 6.44, with a median of 7.63.
Investors should also note that TECD holds a PEG ratio of 0.93. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TECD's PEG compares to its industry's average PEG of 1.02. Over the past 52 weeks, TECD's PEG has been as high as 1.11 and as low as 0.37, with a median of 0.94.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TECD has a P/S ratio of 0.09. This compares to its industry's average P/S of 0.2.
Finally, our model also underscores that TECD has a P/CF ratio of 9.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.76. Over the past year, TECD's P/CF has been as high as 15.55 and as low as 7.13, with a median of 11.08.
These are just a handful of the figures considered in Tech Data'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 TECD is an impressive value stock right now.
Image: Bigstock
Are Investors Undervaluing Tech Data (TECD) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Tech Data . TECD 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 8.12, which compares to its industry's average of 8.59. Over the past year, TECD's Forward P/E has been as high as 11.06 and as low as 6.44, with a median of 7.63.
Investors should also note that TECD holds a PEG ratio of 0.93. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TECD's PEG compares to its industry's average PEG of 1.02. Over the past 52 weeks, TECD's PEG has been as high as 1.11 and as low as 0.37, with a median of 0.94.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TECD has a P/S ratio of 0.09. This compares to its industry's average P/S of 0.2.
Finally, our model also underscores that TECD has a P/CF ratio of 9.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.76. Over the past year, TECD's P/CF has been as high as 15.55 and as low as 7.13, with a median of 11.08.
These are just a handful of the figures considered in Tech Data'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 TECD is an impressive value stock right now.