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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.36. This compares to its industry's average Forward P/E of 16.70. Over the last 12 months, FLEX's Forward P/E has been as high as 11.41 and as low as 8.10, with a median of 9.78.
FLEX is also sporting a PEG ratio of 0.76. 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. FLEX's industry has an average PEG of 1.78 right now. Over the past 52 weeks, FLEX's PEG has been as high as 1.09 and as low as 0.61, with a median of 0.78.
Another valuation metric that we should highlight is FLEX's P/B ratio of 1.83. 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. This company's current P/B looks solid when compared to its industry's average P/B of 4.46. Over the past year, FLEX's P/B has been as high as 2.51 and as low as 1.56, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLEX has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.84.
Finally, we should also recognize that FLEX has a P/CF ratio of 9.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.24. Over the past year, FLEX's P/CF has been as high as 10.08 and as low as 6.85, with a median of 8.52.
These are only a few of the key metrics included in Flex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLEX looks like an impressive value stock at the moment.
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Should Value Investors Buy Flex (FLEX) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Flex (FLEX - Free Report) . FLEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.36. This compares to its industry's average Forward P/E of 16.70. Over the last 12 months, FLEX's Forward P/E has been as high as 11.41 and as low as 8.10, with a median of 9.78.
FLEX is also sporting a PEG ratio of 0.76. 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. FLEX's industry has an average PEG of 1.78 right now. Over the past 52 weeks, FLEX's PEG has been as high as 1.09 and as low as 0.61, with a median of 0.78.
Another valuation metric that we should highlight is FLEX's P/B ratio of 1.83. 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. This company's current P/B looks solid when compared to its industry's average P/B of 4.46. Over the past year, FLEX's P/B has been as high as 2.51 and as low as 1.56, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLEX has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.84.
Finally, we should also recognize that FLEX has a P/CF ratio of 9.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.24. Over the past year, FLEX's P/CF has been as high as 10.08 and as low as 6.85, with a median of 8.52.
These are only a few of the key metrics included in Flex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLEX looks like an impressive value stock at the moment.