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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Celestica (CLS - Free Report) . CLS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.73, while its industry has an average P/E of 9.91. Over the past 52 weeks, CLS's Forward P/E has been as high as 9.44 and as low as 4.65, with a median of 6.42.
We also note that CLS holds a PEG ratio of 0.30. 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. CLS's industry has an average PEG of 0.68 right now. Within the past year, CLS's PEG has been as high as 0.93 and as low as 0.28, with a median of 0.44.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.37.
Finally, investors should note that CLS has a P/CF ratio of 5.02. 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. CLS's current P/CF looks attractive when compared to its industry's average P/CF of 6.01. Over the past 52 weeks, CLS's P/CF has been as high as 6.97 and as low as 3.74, with a median of 5.55.
Another great Electronics - Manufacturing Services stock you could consider is Jabil (JBL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Jabil currently holds a Forward P/E ratio of 7.78, and its PEG ratio is 0.65. In comparison, its industry sports average P/E and PEG ratios of 9.91 and 0.68.
Over the last 12 months, JBL's P/E has been as high as 10.74, as low as 6.46, with a median of 7.86, and its PEG ratio has been as high as 0.89, as low as 0.54, with a median of 0.65.
Additionally, Jabil has a P/B ratio of 3.61 while its industry's price-to-book ratio sits at 2.70. For JBL, this valuation metric has been as high as 4.64, as low as 2.95, with a median of 3.57 over the past year.
These are only a few of the key metrics included in Celestica and Jabil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CLS and JBL look like an impressive value stock at the moment.
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Is Celestica (CLS) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Celestica (CLS - Free Report) . CLS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.73, while its industry has an average P/E of 9.91. Over the past 52 weeks, CLS's Forward P/E has been as high as 9.44 and as low as 4.65, with a median of 6.42.
We also note that CLS holds a PEG ratio of 0.30. 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. CLS's industry has an average PEG of 0.68 right now. Within the past year, CLS's PEG has been as high as 0.93 and as low as 0.28, with a median of 0.44.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.37.
Finally, investors should note that CLS has a P/CF ratio of 5.02. 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. CLS's current P/CF looks attractive when compared to its industry's average P/CF of 6.01. Over the past 52 weeks, CLS's P/CF has been as high as 6.97 and as low as 3.74, with a median of 5.55.
Another great Electronics - Manufacturing Services stock you could consider is Jabil (JBL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Jabil currently holds a Forward P/E ratio of 7.78, and its PEG ratio is 0.65. In comparison, its industry sports average P/E and PEG ratios of 9.91 and 0.68.
Over the last 12 months, JBL's P/E has been as high as 10.74, as low as 6.46, with a median of 7.86, and its PEG ratio has been as high as 0.89, as low as 0.54, with a median of 0.65.
Additionally, Jabil has a P/B ratio of 3.61 while its industry's price-to-book ratio sits at 2.70. For JBL, this valuation metric has been as high as 4.64, as low as 2.95, with a median of 3.57 over the past year.
These are only a few of the key metrics included in Celestica and Jabil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CLS and JBL look like an impressive value stock at the moment.