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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Elekta (EKTAY - Free Report) . EKTAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.82 right now. For comparison, its industry sports an average P/E of 33.84. Over the last 12 months, EKTAY's Forward P/E has been as high as 52.33 and as low as 15.41, with a median of 21.72.
Another notable valuation metric for EKTAY is its P/B ratio of 2.91. The P/B ratio is used to compare a stock's market value with 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 4.33. Within the past 52 weeks, EKTAY's P/B has been as high as 3.56 and as low as 2.59, with a median of 3.06.
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. EKTAY has a P/S ratio of 1.57. This compares to its industry's average P/S of 3.33.
Finally, we should also recognize that EKTAY has a P/CF ratio of 11.76. 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 26.88. EKTAY's P/CF has been as high as 17.26 and as low as 11.23, with a median of 13.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Elekta is likely undervalued currently. And when considering the strength of its earnings outlook, EKTAY sticks out at as one of the market's strongest value stocks.
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Is Elekta (EKTAY) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Elekta (EKTAY - Free Report) . EKTAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.82 right now. For comparison, its industry sports an average P/E of 33.84. Over the last 12 months, EKTAY's Forward P/E has been as high as 52.33 and as low as 15.41, with a median of 21.72.
Another notable valuation metric for EKTAY is its P/B ratio of 2.91. The P/B ratio is used to compare a stock's market value with 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 4.33. Within the past 52 weeks, EKTAY's P/B has been as high as 3.56 and as low as 2.59, with a median of 3.06.
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. EKTAY has a P/S ratio of 1.57. This compares to its industry's average P/S of 3.33.
Finally, we should also recognize that EKTAY has a P/CF ratio of 11.76. 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 26.88. EKTAY's P/CF has been as high as 17.26 and as low as 11.23, with a median of 13.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Elekta is likely undervalued currently. And when considering the strength of its earnings outlook, EKTAY sticks out at as one of the market's strongest value stocks.