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Is Sify Technologies Limited (SIFY) 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 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 company to watch right now is Sify Technologies Limited (SIFY - Free Report) . SIFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 22, while its industry has an average P/E of 23.93. Over the last 12 months, SIFY's Forward P/E has been as high as 31.67 and as low as 19.28, with a median of 22.94.
SIFY is also sporting a PEG ratio of 1.10. 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. SIFY's PEG compares to its industry's average PEG of 1.55. Over the last 12 months, SIFY's PEG has been as high as 1.58 and as low as 0.96, with a median of 1.15.
Another valuation metric that we should highlight is SIFY's P/B ratio of 1.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.25. SIFY's P/B has been as high as 3.82 and as low as 1.79, with a median of 2.90, 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. SIFY has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.68.
Investors could also keep in mind Trivago (TRVG - Free Report) , an Internet - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Trivago has a P/B ratio of 0.82 while its industry's price-to-book ratio sits at 5.25. For TRVG, this valuation metric has been as high as 1.35, as low as 0.67, with a median of 0.98 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sify Technologies Limited and Trivago are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIFY and TRVG feels like a great value stock at the moment.
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Is Sify Technologies Limited (SIFY) a Great Value Stock Right Now?
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 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 company to watch right now is Sify Technologies Limited (SIFY - Free Report) . SIFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 22, while its industry has an average P/E of 23.93. Over the last 12 months, SIFY's Forward P/E has been as high as 31.67 and as low as 19.28, with a median of 22.94.
SIFY is also sporting a PEG ratio of 1.10. 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. SIFY's PEG compares to its industry's average PEG of 1.55. Over the last 12 months, SIFY's PEG has been as high as 1.58 and as low as 0.96, with a median of 1.15.
Another valuation metric that we should highlight is SIFY's P/B ratio of 1.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.25. SIFY's P/B has been as high as 3.82 and as low as 1.79, with a median of 2.90, 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. SIFY has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.68.
Investors could also keep in mind Trivago (TRVG - Free Report) , an Internet - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Trivago has a P/B ratio of 0.82 while its industry's price-to-book ratio sits at 5.25. For TRVG, this valuation metric has been as high as 1.35, as low as 0.67, with a median of 0.98 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sify Technologies Limited and Trivago are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIFY and TRVG feels like a great value stock at the moment.