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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Amdocs (DOX - Free Report) . DOX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.72 right now. For comparison, its industry sports an average P/E of 19.42. Over the past year, DOX's Forward P/E has been as high as 16.42 and as low as 12.21, with a median of 14.17.
DOX is also sporting a PEG ratio of 1.61. 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. DOX's PEG compares to its industry's average PEG of 1.79. Within the past year, DOX's PEG has been as high as 2.10 and as low as 1.44, with a median of 1.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DOX has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.12.
Finally, we should also recognize that DOX has a P/CF ratio of 14.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.88. Within the past 12 months, DOX's P/CF has been as high as 16.75 and as low as 12.93, with a median of 14.87.
These are just a handful of the figures considered in Amdocs'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 DOX is an impressive value stock right now.
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Is Amdocs (DOX) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Amdocs (DOX - Free Report) . DOX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.72 right now. For comparison, its industry sports an average P/E of 19.42. Over the past year, DOX's Forward P/E has been as high as 16.42 and as low as 12.21, with a median of 14.17.
DOX is also sporting a PEG ratio of 1.61. 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. DOX's PEG compares to its industry's average PEG of 1.79. Within the past year, DOX's PEG has been as high as 2.10 and as low as 1.44, with a median of 1.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DOX has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.12.
Finally, we should also recognize that DOX has a P/CF ratio of 14.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.88. Within the past 12 months, DOX's P/CF has been as high as 16.75 and as low as 12.93, with a median of 14.87.
These are just a handful of the figures considered in Amdocs'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 DOX is an impressive value stock right now.