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Is Infineon Technologies (IFNNY) a Great Value Stock 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, 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 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.

Infineon Technologies (IFNNY - Free Report) is a stock many investors are watching right now. IFNNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.75 right now. For comparison, its industry sports an average P/E of 16.91. Over the last 12 months, IFNNY's Forward P/E has been as high as 21.49 and as low as 10.93, with a median of 14.46.

IFNNY is also sporting a PEG ratio of 1.43. 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. IFNNY's PEG compares to its industry's average PEG of 1.47. Over the last 12 months, IFNNY's PEG has been as high as 1.43 and as low as 0.46, with a median of 0.69.

Investors should also recognize that IFNNY has a P/B ratio of 3.06. 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 4.93. Over the past year, IFNNY's P/B has been as high as 3.95 and as low as 1.91, with a median of 2.70.

Finally, we should also recognize that IFNNY has a P/CF ratio of 11.94. 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. IFNNY's P/CF compares to its industry's average P/CF of 19.39. Over the past year, IFNNY's P/CF has been as high as 15.82 and as low as 7.34, with a median of 10.95.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Infineon Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IFNNY feels like a great value stock at the moment.


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