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Is Tecogen (TGEN) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Tecogen (TGEN - Free Report) . TGEN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TGEN has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.46.

Finally, investors should note that TGEN has a P/CF ratio of 12.05. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TGEN's P/CF compares to its industry's average P/CF of 29.96. TGEN's P/CF has been as high as 45.70 and as low as 6.20, with a median of 13.68, all within the past year.

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


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