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Should Value Investors Buy Concentrix (CNXC) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Concentrix (CNXC - Free Report) . CNXC 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 9.29. This compares to its industry's average Forward P/E of 17.44. Over the last 12 months, CNXC's Forward P/E has been as high as 17.27 and as low as 8.55, with a median of 11.44.
We also note that CNXC holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNXC's PEG compares to its industry's average PEG of 1.02. Over the past 52 weeks, CNXC's PEG has been as high as 1.06 and as low as 0.62, with a median of 0.77.
Another notable valuation metric for CNXC is its P/B ratio of 2.34. The P/B is a method of comparing a stock's market value to 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 3.10. Over the past year, CNXC's P/B has been as high as 4.11 and as low as 2.16, with a median of 2.83.
Finally, investors should note that CNXC has a P/CF ratio of 8.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.17. Over the past year, CNXC's P/CF has been as high as 15.68 and as low as 7.50, with a median of 10.77.
IBEX Limited (IBEX - Free Report) may be another strong Business - Services stock to add to your shortlist. IBEX is a # 1 (Strong Buy) stock with a Value grade of A.
IBEX Limited also has a P/B ratio of 4.59 compared to its industry's price-to-book ratio of 3.10. Over the past year, its P/B ratio has been as high as 4.60, as low as 2.56, with a median of 3.14.
These are just a handful of the figures considered in Concentrix and IBEX Limited'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 CNXC and IBEX is an impressive value stock right now.
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Should Value Investors Buy Concentrix (CNXC) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Concentrix (CNXC - Free Report) . CNXC 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 9.29. This compares to its industry's average Forward P/E of 17.44. Over the last 12 months, CNXC's Forward P/E has been as high as 17.27 and as low as 8.55, with a median of 11.44.
We also note that CNXC holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNXC's PEG compares to its industry's average PEG of 1.02. Over the past 52 weeks, CNXC's PEG has been as high as 1.06 and as low as 0.62, with a median of 0.77.
Another notable valuation metric for CNXC is its P/B ratio of 2.34. The P/B is a method of comparing a stock's market value to 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 3.10. Over the past year, CNXC's P/B has been as high as 4.11 and as low as 2.16, with a median of 2.83.
Finally, investors should note that CNXC has a P/CF ratio of 8.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.17. Over the past year, CNXC's P/CF has been as high as 15.68 and as low as 7.50, with a median of 10.77.
IBEX Limited (IBEX - Free Report) may be another strong Business - Services stock to add to your shortlist. IBEX is a # 1 (Strong Buy) stock with a Value grade of A.
IBEX Limited also has a P/B ratio of 4.59 compared to its industry's price-to-book ratio of 3.10. Over the past year, its P/B ratio has been as high as 4.60, as low as 2.56, with a median of 3.14.
These are just a handful of the figures considered in Concentrix and IBEX Limited'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 CNXC and IBEX is an impressive value stock right now.