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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Netgear (NTGR - Free Report) . NTGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.81 right now. For comparison, its industry sports an average P/E of 17.40. NTGR's Forward P/E has been as high as 28.26 and as low as 12.85, with a median of 21.28, all within the past year.
Another valuation metric that we should highlight is NTGR's P/B ratio of 1.79. 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. NTGR's current P/B looks attractive when compared to its industry's average P/B of 4.90. NTGR's P/B has been as high as 3.27 and as low as 1.57, with a median of 2.48, over the past year.
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. NTGR has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.36.
Finally, our model also underscores that NTGR has a P/CF ratio of 57.72. 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. NTGR's P/CF compares to its industry's average P/CF of 61.36. Over the past year, NTGR's P/CF has been as high as 1,615.60 and as low as 37.59, with a median of 84.36.
These are just a handful of the figures considered in Netgear'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 NTGR is an impressive value stock right now.
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Is Netgear (NTGR) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Netgear (NTGR - Free Report) . NTGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.81 right now. For comparison, its industry sports an average P/E of 17.40. NTGR's Forward P/E has been as high as 28.26 and as low as 12.85, with a median of 21.28, all within the past year.
Another valuation metric that we should highlight is NTGR's P/B ratio of 1.79. 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. NTGR's current P/B looks attractive when compared to its industry's average P/B of 4.90. NTGR's P/B has been as high as 3.27 and as low as 1.57, with a median of 2.48, over the past year.
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. NTGR has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.36.
Finally, our model also underscores that NTGR has a P/CF ratio of 57.72. 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. NTGR's P/CF compares to its industry's average P/CF of 61.36. Over the past year, NTGR's P/CF has been as high as 1,615.60 and as low as 37.59, with a median of 84.36.
These are just a handful of the figures considered in Netgear'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 NTGR is an impressive value stock right now.