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Is Universal Technical Institute (UTI) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 stock to keep an eye on is Universal Technical Institute (UTI - Free Report) . UTI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that UTI has a P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. UTI's current P/B looks attractive when compared to its industry's average P/B of 1.87. UTI's P/B has been as high as 2.55 and as low as 1.60, with a median of 2.04, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. UTI has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.04.

If you're looking for another solid Schools value stock, take a look at Vitru Limited (VTRU - Free Report) . VTRU is a # 2 (Buy) stock with a Value score of A.

Shares of Vitru Limited currently holds a Forward P/E ratio of 2.55, and its PEG ratio is 0.09. In comparison, its industry sports average P/E and PEG ratios of 48.55 and 2.99.

VTRU's price-to-earnings ratio has been as high as 23.52 and as low as 2.21, with a median of 12.79, while its PEG ratio has been as high as 0.62 and as low as 0.07, with a median of 0.41, all within the past year.

Furthermore, Vitru Limited holds a P/B ratio of 1.85 and its industry's price-to-book ratio is 1.87. VTRU's P/B has been as high as 2.22, as low as 1.37, with a median of 1.80 over the past 12 months.

These are just a handful of the figures considered in Universal Technical Institute and Vitru Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UTI and VTRU is an impressive value stock right now.


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