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Are Investors Undervaluing PLDT (PHI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 value investors might notice is PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.73, which compares to its industry's average of 11.19. Over the last 12 months, PHI's Forward P/E has been as high as 12.28 and as low as 6.69, with a median of 9.54.
Finally, we should also recognize that PHI has a P/CF ratio of 4.15. 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 6.75. Within the past 12 months, PHI's P/CF has been as high as 4.15 and as low as 2.57, with a median of 3.57.
These are just a handful of the figures considered in PLDT'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 PHI is an impressive value stock right now.