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Should Value Investors Buy PLDT (PHI) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is PLDT (PHI - Free Report) . PHI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.89, which compares to its industry's average of 9.04. PHI's Forward P/E has been as high as 10.14 and as low as 7.06, with a median of 8.55, all within the past year.

Finally, investors will want to recognize that PHI has a P/CF ratio of 3.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.12. Over the past 52 weeks, PHI's P/CF has been as high as 4.05 and as low as 2.88, with a median of 3.37.

Value investors will likely look at more than just these metrics, but the above data helps show that PLDT is likely undervalued currently. And when considering the strength of its earnings outlook, PHI sticks out at as one of the market's strongest value stocks.


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