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Should Value Investors Buy Vontier (VNT) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Vontier (VNT - Free Report) . VNT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.95. This compares to its industry's average Forward P/E of 22.79. Over the last 12 months, VNT's Forward P/E has been as high as 12.96 and as low as 8.65, with a median of 11.28.

We should also highlight that VNT has a P/B ratio of 4.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.65. Within the past 52 weeks, VNT's P/B has been as high as 6.21 and as low as 3.75, with a median of 5.12.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. VNT has a P/S ratio of 1.78. This compares to its industry's average P/S of 1.9.

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


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