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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 Diodes (DIOD - Free Report) . DIOD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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. DIOD has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.44.
Finally, we should also recognize that DIOD has a P/CF ratio of 10.29. 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. DIOD's P/CF compares to its industry's average P/CF of 27. Over the past 52 weeks, DIOD's P/CF has been as high as 12.98 and as low as 7.16, with a median of 8.74.
Value investors will likely look at more than just these metrics, but the above data helps show that Diodes is likely undervalued currently. And when considering the strength of its earnings outlook, DIOD sticks out at as one of the market's strongest value stocks.
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Is Diodes (DIOD) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 Diodes (DIOD - Free Report) . DIOD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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. DIOD has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.44.
Finally, we should also recognize that DIOD has a P/CF ratio of 10.29. 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. DIOD's P/CF compares to its industry's average P/CF of 27. Over the past 52 weeks, DIOD's P/CF has been as high as 12.98 and as low as 7.16, with a median of 8.74.
Value investors will likely look at more than just these metrics, but the above data helps show that Diodes is likely undervalued currently. And when considering the strength of its earnings outlook, DIOD sticks out at as one of the market's strongest value stocks.