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Are Investors Undervaluing Strattec Security (STRT) 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.
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.
Strattec Security (STRT - Free Report) is a stock many investors are watching right now. STRT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for STRT is its P/B ratio of 0.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.41. Within the past 52 weeks, STRT's P/B has been as high as 1.23 and as low as 0.24, with a median of 0.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. STRT has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that STRT has a P/CF ratio of 5.90. 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. STRT's P/CF compares to its industry's average P/CF of 8.82. Within the past 12 months, STRT's P/CF has been as high as 10.34 and as low as 1.97, with a median of 6.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Strattec Security is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STRT feels like a great value stock at the moment.
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Are Investors Undervaluing Strattec Security (STRT) Right Now?
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.
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.
Strattec Security (STRT - Free Report) is a stock many investors are watching right now. STRT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for STRT is its P/B ratio of 0.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.41. Within the past 52 weeks, STRT's P/B has been as high as 1.23 and as low as 0.24, with a median of 0.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. STRT has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that STRT has a P/CF ratio of 5.90. 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. STRT's P/CF compares to its industry's average P/CF of 8.82. Within the past 12 months, STRT's P/CF has been as high as 10.34 and as low as 1.97, with a median of 6.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Strattec Security is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STRT feels like a great value stock at the moment.