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Is Infineon Technologies (IFNNY) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Infineon Technologies (IFNNY - Free Report) . IFNNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.36, while its industry has an average P/E of 17.93. Over the last 12 months, IFNNY's Forward P/E has been as high as 17.89 and as low as 10.93, with a median of 14.44.

IFNNY is also sporting a PEG ratio of 1.33. 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. IFNNY's industry currently sports an average PEG of 3.40. Within the past year, IFNNY's PEG has been as high as 1.58 and as low as 0.46, with a median of 0.68.

Another notable valuation metric for IFNNY is its P/B ratio of 3.15. 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. IFNNY's current P/B looks attractive when compared to its industry's average P/B of 4.17. Within the past 52 weeks, IFNNY's P/B has been as high as 3.44 and as low as 1.91, with a median of 2.70.

Finally, investors should note that IFNNY has a P/CF ratio of 11.57. 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. IFNNY's P/CF compares to its industry's average P/CF of 20.69. Over the past 52 weeks, IFNNY's P/CF has been as high as 13.79 and as low as 7.34, with a median of 10.78.

Value investors will likely look at more than just these metrics, but the above data helps show that Infineon Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, IFNNY sticks out at as one of the market's strongest value stocks.


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