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Is Ichor (ICHR) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Ichor (ICHR - Free Report) is a stock many investors are watching right now. ICHR 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 10.52, while its industry has an average P/E of 13.67. Over the past year, ICHR's Forward P/E has been as high as 27.38 and as low as 5.11, with a median of 10.22.

Investors should also recognize that ICHR has a P/B ratio of 2.89. Investors use the P/B ratio to look at a stock's market value versus 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 8.12. Over the past 12 months, ICHR's P/B has been as high as 4.04 and as low as 1.51, with a median of 2.53.

Finally, we should also recognize that ICHR has a P/CF ratio of 13.83. 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. ICHR's current P/CF looks attractive 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 9.39, with a median of 14.80.

These are just a handful of the figures considered in Ichor'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 ICHR is an impressive value stock right now.

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