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Are Investors Undervaluing Ichor Holdings, Ltd. (ICHR) Right Now?

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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.

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 to watch right now is Ichor Holdings, Ltd. (ICHR - Free Report) . ICHR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.59, which compares to its industry's average of 14.20. ICHR's Forward P/E has been as high as 27.38 and as low as 5.11, with a median of 12.39, all within the past year.

Finally, we should also recognize that ICHR has a P/CF ratio of 11.12. 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 26.18. Over the past year, ICHR's P/CF has been as high as 27.28 and as low as 10.05, with a median of 16.37.

These are only a few of the key metrics included in Ichor Holdings, Ltd.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ICHR looks like an impressive value stock at the moment.


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