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Are Investors Undervaluing Teradata (TDC) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 to watch right now is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.70, which compares to its industry's average of 18.76. Over the past 52 weeks, TDC's Forward P/E has been as high as 14.66 and as low as 8.41, with a median of 12.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TDC has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.43.
Finally, our model also underscores that TDC has a P/CF ratio of 9.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.22. Within the past 12 months, TDC's P/CF has been as high as 22.09 and as low as 8.10, with a median of 15.44.
These are just a handful of the figures considered in Teradata's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TDC is an impressive value stock right now.
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Are Investors Undervaluing Teradata (TDC) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 to watch right now is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.70, which compares to its industry's average of 18.76. Over the past 52 weeks, TDC's Forward P/E has been as high as 14.66 and as low as 8.41, with a median of 12.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TDC has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.43.
Finally, our model also underscores that TDC has a P/CF ratio of 9.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.22. Within the past 12 months, TDC's P/CF has been as high as 22.09 and as low as 8.10, with a median of 15.44.
These are just a handful of the figures considered in Teradata's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TDC is an impressive value stock right now.