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Are Investors Undervaluing Internet Initiative Japan (IIJIY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Internet Initiative Japan (IIJIY - Free Report) . IIJIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 23.21, which compares to its industry's average of 25.62. Over the past 52 weeks, IIJIY's Forward P/E has been as high as 40.87 and as low as 21.64, with a median of 27.82.

We should also highlight that IIJIY has a P/B ratio of 2.70. 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 stock's P/B looks attractive against its industry's average P/B of 7.24. Within the past 52 weeks, IIJIY's P/B has been as high as 2.90 and as low as 1.93, with a median of 2.40.

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


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