Back to top

Image: Bigstock

Are Investors Undervaluing Vontier (VNT) Right Now?

Read MoreHide Full Article

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 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 company value investors might notice is Vontier (VNT - Free Report) . VNT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.85 right now. For comparison, its industry sports an average P/E of 39.73. Over the last 12 months, VNT's Forward P/E has been as high as 13.99 and as low as 8.96, with a median of 10.63.

VNT is also sporting a PEG ratio of 1.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VNT's PEG compares to its industry's average PEG of 1.45. Within the past year, VNT's PEG has been as high as 4.06 and as low as 1.21, with a median of 3.50.

Investors should also recognize that VNT has a P/B ratio of 7.75. 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 8.78. Within the past 52 weeks, VNT's P/B has been as high as 7.82 and as low as 5.76, with a median of 6.80.

These are just a handful of the figures considered in Vontier'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 VNT is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vontier Corporation (VNT) - free report >>

Published in