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Is STMicroelectronics (STM) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is STMicroelectronics (STM - Free Report) . STM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 24.52, while its industry has an average P/E of 34.93. Over the last 12 months, STM's Forward P/E has been as high as 29.34 and as low as 12.82, with a median of 19.86.
We also note that STM holds a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STM's industry has an average PEG of 1.40 right now. STM's PEG has been as high as 4.37 and as low as 0.55, with a median of 2.90, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that STMicroelectronics is likely undervalued currently. And when considering the strength of its earnings outlook, STM sticks out as one of the market's strongest value stocks.
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Is STMicroelectronics (STM) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is STMicroelectronics (STM - Free Report) . STM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 24.52, while its industry has an average P/E of 34.93. Over the last 12 months, STM's Forward P/E has been as high as 29.34 and as low as 12.82, with a median of 19.86.
We also note that STM holds a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STM's industry has an average PEG of 1.40 right now. STM's PEG has been as high as 4.37 and as low as 0.55, with a median of 2.90, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that STMicroelectronics is likely undervalued currently. And when considering the strength of its earnings outlook, STM sticks out as one of the market's strongest value stocks.