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Is International Game Technology (IGT) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is International Game Technology (IGT - Free Report) . IGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IGT has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.39.

Finally, we should also recognize that IGT has a P/CF ratio of 3.46. 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 10.59. IGT's P/CF has been as high as 3.79 and as low as 0.84, with a median of 2.93, all within the past year.

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


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