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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Tech Data . TECD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that TECD holds 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. TECD's industry has an average PEG of 1.09 right now. Within the past year, TECD's PEG has been as high as 1.11 and as low as 0.37, with a median of 0.96.
Another notable valuation metric for TECD is its P/B ratio of 1.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.27. TECD's P/B has been as high as 1.41 and as low as 0.91, with a median of 1.10, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TECD has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.24.
Finally, investors should note that TECD has a P/CF ratio of 9.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TECD's P/CF compares to its industry's average P/CF of 9.46. Over the past 52 weeks, TECD's P/CF has been as high as 15.55 and as low as 7.13, with a median of 10.45.
These are only a few of the key metrics included in Tech Data'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, TECD looks like an impressive value stock at the moment.
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Is Tech Data (TECD) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Tech Data . TECD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that TECD holds 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. TECD's industry has an average PEG of 1.09 right now. Within the past year, TECD's PEG has been as high as 1.11 and as low as 0.37, with a median of 0.96.
Another notable valuation metric for TECD is its P/B ratio of 1.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.27. TECD's P/B has been as high as 1.41 and as low as 0.91, with a median of 1.10, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TECD has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.24.
Finally, investors should note that TECD has a P/CF ratio of 9.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TECD's P/CF compares to its industry's average P/CF of 9.46. Over the past 52 weeks, TECD's P/CF has been as high as 15.55 and as low as 7.13, with a median of 10.45.
These are only a few of the key metrics included in Tech Data'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, TECD looks like an impressive value stock at the moment.