Back to top

Image: Bigstock

Is Integer (ITGR) Stock Undervalued Right Now?

Read MoreHide Full Article

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Integer (ITGR - Free Report) . ITGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.89 right now. For comparison, its industry sports an average P/E of 32.02. Over the past year, ITGR's Forward P/E has been as high as 22.21 and as low as 14.99, with a median of 17.75.

Another valuation metric that we should highlight is ITGR's P/B ratio of 2.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ITGR's current P/B looks attractive when compared to its industry's average P/B of 3.70. Within the past 52 weeks, ITGR's P/B has been as high as 2.81 and as low as 2.05, with a median of 2.35.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ITGR has a P/S ratio of 1.95. This compares to its industry's average P/S of 3.32.

Finally, we should also recognize that ITGR has a P/CF ratio of 12.93. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.24. Over the past year, ITGR's P/CF has been as high as 13.16 and as low as 6.59, with a median of 8.24.

These are just a handful of the figures considered in Integer'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 ITGR is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Integer Holdings Corporation (ITGR) - free report >>

Published in