We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.70. This compares to its industry's average Forward P/E of 16.06. Over the past year, FLEX's Forward P/E has been as high as 9.69 and as low as 6.28, with a median of 8.09.
We also note that FLEX holds a PEG ratio of 0.68. 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. FLEX's industry has an average PEG of 1.73 right now. Within the past year, FLEX's PEG has been as high as 0.78 and as low as 0.42, with a median of 0.56.
We should also highlight that FLEX has a P/B ratio of 2.23. 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. This stock's P/B looks solid versus its industry's average P/B of 3.72. Over the past 12 months, FLEX's P/B has been as high as 2.46 and as low as 1.58, with a median of 2.02.
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. FLEX has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.73.
Finally, we should also recognize that FLEX has a P/CF ratio of 7.23. 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 10.49. Over the past 52 weeks, FLEX's P/CF has been as high as 7.29 and as low as 4.70, with a median of 5.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Flex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLEX feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Flex (FLEX) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.70. This compares to its industry's average Forward P/E of 16.06. Over the past year, FLEX's Forward P/E has been as high as 9.69 and as low as 6.28, with a median of 8.09.
We also note that FLEX holds a PEG ratio of 0.68. 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. FLEX's industry has an average PEG of 1.73 right now. Within the past year, FLEX's PEG has been as high as 0.78 and as low as 0.42, with a median of 0.56.
We should also highlight that FLEX has a P/B ratio of 2.23. 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. This stock's P/B looks solid versus its industry's average P/B of 3.72. Over the past 12 months, FLEX's P/B has been as high as 2.46 and as low as 1.58, with a median of 2.02.
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. FLEX has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.73.
Finally, we should also recognize that FLEX has a P/CF ratio of 7.23. 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 10.49. Over the past 52 weeks, FLEX's P/CF has been as high as 7.29 and as low as 4.70, with a median of 5.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Flex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLEX feels like a great value stock at the moment.