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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Chegg (CHGG - Free Report) . CHGG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
CHGG is also sporting a PEG ratio of 0.61. 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. CHGG's industry currently sports an average PEG of 1.59. Within the past year, CHGG's PEG has been as high as 1.43 and as low as 0.58, with a median of 1.05.
Investors should also recognize that CHGG has a P/B ratio of 0.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CHGG's current P/B looks attractive when compared to its industry's average P/B of 2.63. Over the past 12 months, CHGG's P/B has been as high as 3.58 and as low as 0.97, with a median of 1.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHGG has a P/S ratio of 1.3. This compares to its industry's average P/S of 2.63.
Investors could also keep in mind Thryv (THRY - Free Report) , an Internet - Software stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Thryv also has a P/B ratio of 1.67 compared to its industry's price-to-book ratio of 2.63. Over the past year, its P/B ratio has been as high as 2.29, as low as 1.43, with a median of 1.98.
These are just a handful of the figures considered in Chegg and Thryv'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 CHGG and THRY is an impressive value stock right now.
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Is Chegg (CHGG) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Chegg (CHGG - Free Report) . CHGG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
CHGG is also sporting a PEG ratio of 0.61. 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. CHGG's industry currently sports an average PEG of 1.59. Within the past year, CHGG's PEG has been as high as 1.43 and as low as 0.58, with a median of 1.05.
Investors should also recognize that CHGG has a P/B ratio of 0.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CHGG's current P/B looks attractive when compared to its industry's average P/B of 2.63. Over the past 12 months, CHGG's P/B has been as high as 3.58 and as low as 0.97, with a median of 1.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHGG has a P/S ratio of 1.3. This compares to its industry's average P/S of 2.63.
Investors could also keep in mind Thryv (THRY - Free Report) , an Internet - Software stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Thryv also has a P/B ratio of 1.67 compared to its industry's price-to-book ratio of 2.63. Over the past year, its P/B ratio has been as high as 2.29, as low as 1.43, with a median of 1.98.
These are just a handful of the figures considered in Chegg and Thryv'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 CHGG and THRY is an impressive value stock right now.