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Is Tactile Systems Technology (TCMD) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 21.51 right now. For comparison, its industry sports an average P/E of 33.38. TCMD's Forward P/E has been as high as 936.10 and as low as 13.86, with a median of 38, all within the past year.
Another valuation metric that we should highlight is TCMD's P/B ratio of 1.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.29. TCMD's P/B has been as high as 3.75 and as low as 1.28, with a median of 1.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TCMD has a P/S ratio of 1.24. This compares to its industry's average P/S of 3.25.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 9.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TCMD's P/CF compares to its industry's average P/CF of 26.49. TCMD's P/CF has been as high as 240.14 and as low as 7.55, with a median of 11.02, all within the past year.
These are only a few of the key metrics included in Tactile Systems Technology's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TCMD looks like an impressive value stock at the moment.
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Is Tactile Systems Technology (TCMD) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 21.51 right now. For comparison, its industry sports an average P/E of 33.38. TCMD's Forward P/E has been as high as 936.10 and as low as 13.86, with a median of 38, all within the past year.
Another valuation metric that we should highlight is TCMD's P/B ratio of 1.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.29. TCMD's P/B has been as high as 3.75 and as low as 1.28, with a median of 1.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TCMD has a P/S ratio of 1.24. This compares to its industry's average P/S of 3.25.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 9.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TCMD's P/CF compares to its industry's average P/CF of 26.49. TCMD's P/CF has been as high as 240.14 and as low as 7.55, with a median of 11.02, all within the past year.
These are only a few of the key metrics included in Tactile Systems Technology's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TCMD looks like an impressive value stock at the moment.