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Should Value Investors Buy Tactile Systems Technology (TCMD) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 25.41, which compares to its industry's average of 35.26. Over the past 52 weeks, TCMD's Forward P/E has been as high as 77,732.22 and as low as -13,915.84, with a median of 44.02.
Another notable valuation metric for TCMD is its P/B ratio of 1.97. The P/B ratio pits a stock's market value against 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 4.50. TCMD's P/B has been as high as 3.75 and as low as 1.28, with a median of 2, over the past year.
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. TCMD has a P/S ratio of 1.41. This compares to its industry's average P/S of 3.48.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 11.02. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 28.28. TCMD's P/CF has been as high as 240.14 and as low as -28.80, with a median of 11.36, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tactile Systems Technology is likely undervalued currently. And when considering the strength of its earnings outlook, TCMD sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Tactile Systems Technology (TCMD) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 25.41, which compares to its industry's average of 35.26. Over the past 52 weeks, TCMD's Forward P/E has been as high as 77,732.22 and as low as -13,915.84, with a median of 44.02.
Another notable valuation metric for TCMD is its P/B ratio of 1.97. The P/B ratio pits a stock's market value against 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 4.50. TCMD's P/B has been as high as 3.75 and as low as 1.28, with a median of 2, over the past year.
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. TCMD has a P/S ratio of 1.41. This compares to its industry's average P/S of 3.48.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 11.02. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 28.28. TCMD's P/CF has been as high as 240.14 and as low as -28.80, with a median of 11.36, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tactile Systems Technology is likely undervalued currently. And when considering the strength of its earnings outlook, TCMD sticks out at as one of the market's strongest value stocks.