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Should Value Investors Buy These Computer and Technology Stocks?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Celestica (CLS - Free Report) . CLS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.13, while its industry has an average P/E of 10.83. CLS's Forward P/E has been as high as 9.54 and as low as 6.49, with a median of 7.84, all within the past year.
We also note that CLS holds a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CLS's PEG compares to its industry's average PEG of 0.96. Within the past year, CLS's PEG has been as high as 2.11 and as low as 0.32, with a median of 0.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.36.
Finally, our model also underscores that CLS has a P/CF ratio of 6.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.41. Within the past 12 months, CLS's P/CF has been as high as 6.79 and as low as 4.30, with a median of 5.62.
Another great Electronics - Manufacturing Services stock you could consider is Jabil (JBL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Jabil is currently trading with a Forward P/E ratio of 10.10 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.83 and average PEG ratio of 0.96.
Over the last 12 months, JBL's P/E has been as high as 11.10, as low as 8.69, with a median of 9.92, and its PEG ratio has been as high as 0.93, as low as 0.72, with a median of 0.83.
Furthermore, Jabil holds a P/B ratio of 4.26 and its industry's price-to-book ratio is 2.67. JBL's P/B has been as high as 4.45, as low as 2.98, with a median of 3.87 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Celestica and Jabil are likely undervalued currently. And when considering the strength of its earnings outlook, CLS and JBL sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy These Computer and Technology Stocks?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Celestica (CLS - Free Report) . CLS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.13, while its industry has an average P/E of 10.83. CLS's Forward P/E has been as high as 9.54 and as low as 6.49, with a median of 7.84, all within the past year.
We also note that CLS holds a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CLS's PEG compares to its industry's average PEG of 0.96. Within the past year, CLS's PEG has been as high as 2.11 and as low as 0.32, with a median of 0.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.36.
Finally, our model also underscores that CLS has a P/CF ratio of 6.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.41. Within the past 12 months, CLS's P/CF has been as high as 6.79 and as low as 4.30, with a median of 5.62.
Another great Electronics - Manufacturing Services stock you could consider is Jabil (JBL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Jabil is currently trading with a Forward P/E ratio of 10.10 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.83 and average PEG ratio of 0.96.
Over the last 12 months, JBL's P/E has been as high as 11.10, as low as 8.69, with a median of 9.92, and its PEG ratio has been as high as 0.93, as low as 0.72, with a median of 0.83.
Furthermore, Jabil holds a P/B ratio of 4.26 and its industry's price-to-book ratio is 2.67. JBL's P/B has been as high as 4.45, as low as 2.98, with a median of 3.87 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Celestica and Jabil are likely undervalued currently. And when considering the strength of its earnings outlook, CLS and JBL sticks out as one of the market's strongest value stocks.