Is QuoteMedia (QMCI) Stock Undervalued Right Now?

QMCI

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.

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.

QuoteMedia (QMCI - Free Report) is a stock many investors are watching right now. QMCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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. QMCI has a P/S ratio of 1. This compares to its industry's average P/S of 1.58.

Finally, investors should note that QMCI has a P/CF ratio of 8.40. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.61. Over the past year, QMCI's P/CF has been as high as 15.34 and as low as 8, with a median of 10.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that QuoteMedia is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, QMCI feels like a great value stock at the moment.

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