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Should Value Investors Buy Ultra Clean Holdings (UCTT) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ultra Clean Holdings (UCTT - Free Report) . UCTT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.93. This compares to its industry's average Forward P/E of 21.70. Over the past year, UCTT's Forward P/E has been as high as 24.71 and as low as 6.56, with a median of 15.11.
UCTT is also sporting a PEG ratio of 0.99. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UCTT's PEG compares to its industry's average PEG of 2.71. Over the last 12 months, UCTT's PEG has been as high as 2.52 and as low as 0.47, with a median of 1.20.
Investors should also recognize that UCTT has a P/B ratio of 1.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UCTT's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, UCTT's P/B has been as high as 2.55 and as low as 1.09, with a median of 1.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UCTT has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.48.
Finally, we should also recognize that UCTT has a P/CF ratio of 12.03. 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. UCTT's P/CF compares to its industry's average P/CF of 14.29. Over the past year, UCTT's P/CF has been as high as 30.68 and as low as 11.87, with a median of 19.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Ultra Clean Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UCTT sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Ultra Clean Holdings (UCTT) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ultra Clean Holdings (UCTT - Free Report) . UCTT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.93. This compares to its industry's average Forward P/E of 21.70. Over the past year, UCTT's Forward P/E has been as high as 24.71 and as low as 6.56, with a median of 15.11.
UCTT is also sporting a PEG ratio of 0.99. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UCTT's PEG compares to its industry's average PEG of 2.71. Over the last 12 months, UCTT's PEG has been as high as 2.52 and as low as 0.47, with a median of 1.20.
Investors should also recognize that UCTT has a P/B ratio of 1.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UCTT's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, UCTT's P/B has been as high as 2.55 and as low as 1.09, with a median of 1.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UCTT has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.48.
Finally, we should also recognize that UCTT has a P/CF ratio of 12.03. 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. UCTT's P/CF compares to its industry's average P/CF of 14.29. Over the past year, UCTT's P/CF has been as high as 30.68 and as low as 11.87, with a median of 19.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Ultra Clean Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UCTT sticks out at as one of the market's strongest value stocks.