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Are Investors Undervaluing Information Services Group (III) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Information Services Group (III - Free Report) . III is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 20.45. Over the last 12 months, III's Forward P/E has been as high as 13.62 and as low as 9.44, with a median of 10.80.
Investors should also note that III holds a PEG ratio of 0.75. 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. III's industry has an average PEG of 1.79 right now. Over the past 52 weeks, III's PEG has been as high as 0.99 and as low as 0.67, with a median of 0.78.
Investors should also recognize that III has a P/B ratio of 2.45. 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. III's current P/B looks attractive when compared to its industry's average P/B of 6.56. Over the past 12 months, III's P/B has been as high as 3.41 and as low as 2.41, with a median of 2.67.
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. III has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.4.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Information Services Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, III feels like a great value stock at the moment.
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Are Investors Undervaluing Information Services Group (III) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Information Services Group (III - Free Report) . III is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 20.45. Over the last 12 months, III's Forward P/E has been as high as 13.62 and as low as 9.44, with a median of 10.80.
Investors should also note that III holds a PEG ratio of 0.75. 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. III's industry has an average PEG of 1.79 right now. Over the past 52 weeks, III's PEG has been as high as 0.99 and as low as 0.67, with a median of 0.78.
Investors should also recognize that III has a P/B ratio of 2.45. 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. III's current P/B looks attractive when compared to its industry's average P/B of 6.56. Over the past 12 months, III's P/B has been as high as 3.41 and as low as 2.41, with a median of 2.67.
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. III has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.4.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Information Services Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, III feels like a great value stock at the moment.