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Is Seiko Epson (SEKEY) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Seiko Epson (SEKEY - Free Report) . SEKEY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.57 right now. For comparison, its industry sports an average P/E of 9.91. Over the last 12 months, SEKEY's Forward P/E has been as high as 13.67 and as low as 8.76, with a median of 10.36.

Finally, investors should note that SEKEY has a P/CF ratio of 3.89. 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. SEKEY's P/CF compares to its industry's average P/CF of 5.80. SEKEY's P/CF has been as high as 5.48 and as low as 3.44, with a median of 4.04, all within the past year.

These are just a handful of the figures considered in Seiko Epson'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 SEKEY is an impressive value stock right now.


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