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Should Value Investors Buy Ribbon Communications (RBBN) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Ribbon Communications (RBBN - Free Report) is a stock many investors are watching right now. RBBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is RBBN's P/B ratio of 1.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.23. Within the past 52 weeks, RBBN's P/B has been as high as 2.36 and as low as 0.46, with a median of 1.12.
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. RBBN has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.4.
Value investors will likely look at more than just these metrics, but the above data helps show that Ribbon Communications is likely undervalued currently. And when considering the strength of its earnings outlook, RBBN sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Ribbon Communications (RBBN) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Ribbon Communications (RBBN - Free Report) is a stock many investors are watching right now. RBBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is RBBN's P/B ratio of 1.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.23. Within the past 52 weeks, RBBN's P/B has been as high as 2.36 and as low as 0.46, with a median of 1.12.
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. RBBN has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.4.
Value investors will likely look at more than just these metrics, but the above data helps show that Ribbon Communications is likely undervalued currently. And when considering the strength of its earnings outlook, RBBN sticks out at as one of the market's strongest value stocks.