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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Computer Programs and Systems . CPSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that CPSI has a P/B ratio of 2.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.61. Within the past 52 weeks, CPSI's P/B has been as high as 2.48 and as low as 1.35, with a median of 1.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CPSI has a P/S ratio of 1.53. This compares to its industry's average P/S of 3.75.
Finally, our model also underscores that CPSI has a P/CF ratio of 11.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CPSI's current P/CF looks attractive when compared to its industry's average P/CF of 33.31. Within the past 12 months, CPSI's P/CF has been as high as 13.60 and as low as 7.40, with a median of 11.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Computer Programs and Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPSI feels like a great value stock at the moment.
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Is Computer Programs and Systems (CPSI) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Computer Programs and Systems . CPSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that CPSI has a P/B ratio of 2.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.61. Within the past 52 weeks, CPSI's P/B has been as high as 2.48 and as low as 1.35, with a median of 1.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CPSI has a P/S ratio of 1.53. This compares to its industry's average P/S of 3.75.
Finally, our model also underscores that CPSI has a P/CF ratio of 11.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CPSI's current P/CF looks attractive when compared to its industry's average P/CF of 33.31. Within the past 12 months, CPSI's P/CF has been as high as 13.60 and as low as 7.40, with a median of 11.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Computer Programs and Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPSI feels like a great value stock at the moment.