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Should Value Investors Buy PLDT (PHI) Stock?

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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.

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 PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.19, while its industry has an average P/E of 10.56. PHI's Forward P/E has been as high as 12.28 and as low as 6.69, with a median of 9.80, all within the past year.

Finally, we should also recognize that PHI has a P/CF ratio of 4.36. 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. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 6.75. Within the past 12 months, PHI's P/CF has been as high as 4.58 and as low as 2.57, with a median of 3.48.

Value investors will likely look at more than just these metrics, but the above data helps show that PLDT is likely undervalued currently. And when considering the strength of its earnings outlook, PHI sticks out at as one of the market's strongest value stocks.


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