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Are Investors Undervaluing These Computer and Technology Stocks 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.
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 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 stock to keep an eye on is EchoStar (SATS - Free Report) . SATS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that SATS has a P/B ratio of 0.67. The P/B ratio pits a stock's market value against 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 1.08. SATS's P/B has been as high as 0.75 and as low as 0.53, with a median of 0.63, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SATS has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.93.
If you're looking for another solid Satellite and Communication value stock, take a look at SES (SGBAF - Free Report) . SGBAF is a # 2 (Buy) stock with a Value score of A.
SES also has a P/B ratio of 0.70 compared to its industry's price-to-book ratio of 1.08. Over the past year, its P/B ratio has been as high as 0.90, as low as 0.68, with a median of 0.77.
Value investors will likely look at more than just these metrics, but the above data helps show that EchoStar and SES are likely undervalued currently. And when considering the strength of its earnings outlook, SATS and SGBAF sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Computer and Technology Stocks 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.
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 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 stock to keep an eye on is EchoStar (SATS - Free Report) . SATS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that SATS has a P/B ratio of 0.67. The P/B ratio pits a stock's market value against 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 1.08. SATS's P/B has been as high as 0.75 and as low as 0.53, with a median of 0.63, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SATS has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.93.
If you're looking for another solid Satellite and Communication value stock, take a look at SES (SGBAF - Free Report) . SGBAF is a # 2 (Buy) stock with a Value score of A.
SES also has a P/B ratio of 0.70 compared to its industry's price-to-book ratio of 1.08. Over the past year, its P/B ratio has been as high as 0.90, as low as 0.68, with a median of 0.77.
Value investors will likely look at more than just these metrics, but the above data helps show that EchoStar and SES are likely undervalued currently. And when considering the strength of its earnings outlook, SATS and SGBAF sticks out as one of the market's strongest value stocks.