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Is LY CORPORATION (YAHOY) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

LY CORPORATION (YAHOY - Free Report) is a stock many investors are watching right now. YAHOY 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 19.25, which compares to its industry's average of 23.73. YAHOY's Forward P/E has been as high as 25.44 and as low as 18.11, with a median of 21.10, all within the past year.

Finally, we should also recognize that YAHOY has a P/CF ratio of 12.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14. YAHOY's P/CF has been as high as 14.55 and as low as 8.84, with a median of 11.51, 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 LY CORPORATION is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YAHOY feels like a great value stock at the moment.


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