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Are Investors Undervaluing Vinci (VCISY) 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.

One company value investors might notice is Vinci (VCISY - Free Report) . VCISY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.91, which compares to its industry's average of 17.40. Over the past year, VCISY's Forward P/E has been as high as 14.41 and as low as 10.17, with a median of 12.57.

Another valuation metric that we should highlight is VCISY's P/B ratio of 2.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. VCISY's current P/B looks attractive when compared to its industry's average P/B of 2.46. Over the past year, VCISY's P/B has been as high as 2.35 and as low as 1.68, with a median of 2.11.

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


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