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Is TTM Technologies (TTMI) Stock Undervalued Right Now?
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.
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.
TTM Technologies (TTMI - Free Report) is a stock many investors are watching right now. TTMI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.88. This compares to its industry's average Forward P/E of 16.90. Over the past 52 weeks, TTMI's Forward P/E has been as high as 12.60 and as low as 7.88, with a median of 9.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TTMI has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.17.
Finally, investors will want to recognize that TTMI has a P/CF ratio of 6.74. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.90. Over the past 52 weeks, TTMI's P/CF has been as high as 9.08 and as low as 5.73, with a median of 7.14.
These are just a handful of the figures considered in TTM Technologies'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 TTMI is an impressive value stock right now.