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Should Value Investors Buy Orange (ORAN) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Orange (ORAN - Free Report) . ORAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that ORAN holds a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ORAN's industry currently sports an average PEG of 0.66. Over the last 12 months, ORAN's PEG has been as high as 0.70 and as low as 0.49, with a median of 0.58.

We should also highlight that ORAN has a P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.27. Within the past 52 weeks, ORAN's P/B has been as high as 0.94 and as low as 0.67, with a median of 0.83.

Another great Wireless Non-US stock you could consider is TeliaSonera (TLSNY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of TeliaSonera currently holds a Forward P/E ratio of 15.35, and its PEG ratio is 0.29. In comparison, its industry sports average P/E and PEG ratios of 6.33 and 0.66.

Over the last 12 months, TLSNY's P/E has been as high as 19.44, as low as 14.40, with a median of 16.30, and its PEG ratio has been as high as 0.89, as low as 0.26, with a median of 0.34.

Additionally, TeliaSonera has a P/B ratio of 1.63 while its industry's price-to-book ratio sits at 1.27. For TLSNY, this valuation metric has been as high as 1.75, as low as 1.19, with a median of 1.51 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Orange and TeliaSonera are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ORAN and TLSNY feels like a great value stock at the moment.


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