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Is AudioCodes (AUDC) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is AudioCodes (AUDC - Free Report) . AUDC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AUDC has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.21.

Finally, our model also underscores that AUDC has a P/CF ratio of 16.78. 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. AUDC's P/CF compares to its industry's average P/CF of 25.98. Within the past 12 months, AUDC's P/CF has been as high as 33.75 and as low as 13.46, with a median of 20.80.

These are only a few of the key metrics included in AudioCodes'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, AUDC looks like an impressive value stock at the moment.


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