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Should Value Investors Buy International Game Technology (IGT) Stock?
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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 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 value investors might notice is International Game Technology (IGT - Free Report) . IGT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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. IGT has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.39.
Finally, our model also underscores that IGT has a P/CF ratio of 5.60. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.25. Over the past 52 weeks, IGT's P/CF has been as high as 6.86 and as low as 3.69, with a median of 5.36.
Investors could also keep in mind Playtika (PLTK - Free Report) , an Gaming stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Playtika is currently trading with a Forward P/E ratio of 11.51 while its PEG ratio sits at 0.90. Both of the company's metrics compare favorably to its industry's average P/E of 52.61 and average PEG ratio of 2.51.
PLTK's price-to-earnings ratio has been as high as 17.19 and as low as 9.33, with a median of 12.49, while its PEG ratio has been as high as 1.85 and as low as 0.90, with a median of 1.38, all within the past year.
Additionally, Playtika has a P/B ratio of -6.63 while its industry's price-to-book ratio sits at 9.04. For PLTK, this valuation metric has been as high as -5.40, as low as -48.41, with a median of -23.74 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that International Game Technology and Playtika are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IGT and PLTK feels like a great value stock at the moment.
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Should Value Investors Buy International Game Technology (IGT) Stock?
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 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 value investors might notice is International Game Technology (IGT - Free Report) . IGT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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. IGT has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.39.
Finally, our model also underscores that IGT has a P/CF ratio of 5.60. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.25. Over the past 52 weeks, IGT's P/CF has been as high as 6.86 and as low as 3.69, with a median of 5.36.
Investors could also keep in mind Playtika (PLTK - Free Report) , an Gaming stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Playtika is currently trading with a Forward P/E ratio of 11.51 while its PEG ratio sits at 0.90. Both of the company's metrics compare favorably to its industry's average P/E of 52.61 and average PEG ratio of 2.51.
PLTK's price-to-earnings ratio has been as high as 17.19 and as low as 9.33, with a median of 12.49, while its PEG ratio has been as high as 1.85 and as low as 0.90, with a median of 1.38, all within the past year.
Additionally, Playtika has a P/B ratio of -6.63 while its industry's price-to-book ratio sits at 9.04. For PLTK, this valuation metric has been as high as -5.40, as low as -48.41, with a median of -23.74 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that International Game Technology and Playtika are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IGT and PLTK feels like a great value stock at the moment.