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Are Investors Undervaluing Gates Industrial (GTES) Right Now?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Gates Industrial (GTES - Free Report) is a stock many investors are watching right now. GTES is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.03 right now. For comparison, its industry sports an average P/E of 19.48. Over the past year, GTES's Forward P/E has been as high as 12.36 and as low as 8.11, with a median of 10.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GTES has a P/S ratio of 0.9. This compares to its industry's average P/S of 0.95.
Finally, our model also underscores that GTES has a P/CF ratio of 7.08. 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. GTES's current P/CF looks attractive when compared to its industry's average P/CF of 22.30. Over the past 52 weeks, GTES's P/CF has been as high as 9.55 and as low as 6.20, with a median of 8.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gates Industrial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTES feels like a great value stock at the moment.
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Are Investors Undervaluing Gates Industrial (GTES) Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Gates Industrial (GTES - Free Report) is a stock many investors are watching right now. GTES is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.03 right now. For comparison, its industry sports an average P/E of 19.48. Over the past year, GTES's Forward P/E has been as high as 12.36 and as low as 8.11, with a median of 10.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GTES has a P/S ratio of 0.9. This compares to its industry's average P/S of 0.95.
Finally, our model also underscores that GTES has a P/CF ratio of 7.08. 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. GTES's current P/CF looks attractive when compared to its industry's average P/CF of 22.30. Over the past 52 weeks, GTES's P/CF has been as high as 9.55 and as low as 6.20, with a median of 8.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gates Industrial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTES feels like a great value stock at the moment.