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Is Integra LifeSciences (IART) a Great Value Stock Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is Integra LifeSciences (IART - Free Report) . IART is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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. IART has a P/S ratio of 1.14. This compares to its industry's average P/S of 2.88.

Finally, investors will want to recognize that IART has a P/CF ratio of 13.20. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 22.86. IART's P/CF has been as high as 17.85 and as low as 8.38, with a median of 13.47, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Integra LifeSciences is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IART feels like a great value stock at the moment.


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