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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Computer Programs and Systems . CPSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for CPSI is its P/B ratio of 2.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.72. Over the past 12 months, CPSI's P/B has been as high as 2.51 and as low as 1.90, with a median of 2.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPSI has a P/S ratio of 1.8. This compares to its industry's average P/S of 4.42.
Finally, we should also recognize that CPSI has a P/CF ratio of 17.17. 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. CPSI's current P/CF looks attractive when compared to its industry's average P/CF of 24.22. Over the past 52 weeks, CPSI's P/CF has been as high as 17.77 and as low as 10.30, with a median of 15.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Computer Programs and Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPSI feels like a great value stock at the moment.
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Is Computer Programs and Systems (CPSI) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Computer Programs and Systems . CPSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for CPSI is its P/B ratio of 2.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.72. Over the past 12 months, CPSI's P/B has been as high as 2.51 and as low as 1.90, with a median of 2.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPSI has a P/S ratio of 1.8. This compares to its industry's average P/S of 4.42.
Finally, we should also recognize that CPSI has a P/CF ratio of 17.17. 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. CPSI's current P/CF looks attractive when compared to its industry's average P/CF of 24.22. Over the past 52 weeks, CPSI's P/CF has been as high as 17.77 and as low as 10.30, with a median of 15.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Computer Programs and Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPSI feels like a great value stock at the moment.