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Are Investors Undervaluing Flex (FLEX) Right Now?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Flex (FLEX - Free Report) is a stock many investors are watching right now. FLEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.30. This compares to its industry's average Forward P/E of 12.26. FLEX's Forward P/E has been as high as 11.43 and as low as 7.30, with a median of 9.46, all within the past year.

Investors should also note that FLEX holds a PEG ratio of 0.49. 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. FLEX's PEG compares to its industry's average PEG of 1.15. Over the last 12 months, FLEX's PEG has been as high as 1 and as low as 0.49, with a median of 0.77.

Investors should also recognize that FLEX has a P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FLEX's current P/B looks attractive when compared to its industry's average P/B of 3.46. FLEX's P/B has been as high as 2.75 and as low as 1.94, with a median of 2.38, over the past year.

Finally, we should also recognize that FLEX has a P/CF ratio of 5.64. 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 12.01. Over the past 52 weeks, FLEX's P/CF has been as high as 8.13 and as low as 5.06, with a median of 6.16.

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


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