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Is CSG Systems (CSGS) Stock Undervalued 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 stock to keep an eye on is CSG Systems (CSGS - Free Report) . CSGS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.56. This compares to its industry's average Forward P/E of 18.92. CSGS's Forward P/E has been as high as 16.95 and as low as 9.75, with a median of 12.70, all within the past year.

Finally, investors should note that CSGS has a P/CF ratio of 10.30. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CSGS's current P/CF looks attractive when compared to its industry's average P/CF of 12.63. CSGS's P/CF has been as high as 14.90 and as low as 7.81, with a median of 10.95, all within the past year.

These are only a few of the key metrics included in CSG 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, CSGS looks like an impressive value stock at the moment.


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