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Are Investors Undervaluing Ultra Clean (UCTT) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Ultra Clean (UCTT - Free Report) is a stock many investors are watching right now. UCTT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 23.09, while its industry has an average P/E of 27.05. UCTT's Forward P/E has been as high as 26.40 and as low as 9.05, with a median of 13.92, all within the past year.
Investors should also note that UCTT holds a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UCTT's PEG compares to its industry's average PEG of 1.52. Over the past 52 weeks, UCTT's PEG has been as high as 0.70 and as low as 0.26, with a median of 0.40.
Another valuation metric that we should highlight is UCTT's P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.18. Over the past 12 months, UCTT's P/B has been as high as 2.77 and as low as 0.86, with a median of 1.78.
Finally, we should also recognize that UCTT has a P/CF ratio of 9.03. 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. UCTT's current P/CF looks attractive when compared to its industry's average P/CF of 13.58. Over the past 52 weeks, UCTT's P/CF has been as high as 66.56 and as low as 7.55, with a median of 19.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Ultra Clean is likely undervalued currently. And when considering the strength of its earnings outlook, UCTT sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Ultra Clean (UCTT) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Ultra Clean (UCTT - Free Report) is a stock many investors are watching right now. UCTT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 23.09, while its industry has an average P/E of 27.05. UCTT's Forward P/E has been as high as 26.40 and as low as 9.05, with a median of 13.92, all within the past year.
Investors should also note that UCTT holds a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UCTT's PEG compares to its industry's average PEG of 1.52. Over the past 52 weeks, UCTT's PEG has been as high as 0.70 and as low as 0.26, with a median of 0.40.
Another valuation metric that we should highlight is UCTT's P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.18. Over the past 12 months, UCTT's P/B has been as high as 2.77 and as low as 0.86, with a median of 1.78.
Finally, we should also recognize that UCTT has a P/CF ratio of 9.03. 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. UCTT's current P/CF looks attractive when compared to its industry's average P/CF of 13.58. Over the past 52 weeks, UCTT's P/CF has been as high as 66.56 and as low as 7.55, with a median of 19.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Ultra Clean is likely undervalued currently. And when considering the strength of its earnings outlook, UCTT sticks out as one of the market's strongest value stocks.