We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put PLDT Inc. (PHI - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, PLDT Inc. has a trailing twelve months PE ratio of 14.86, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.30. If we focus on the stock’s long-term PE trend, the current level puts PLDT Inc.’s current PE ratio below its midpoint over the past five years, with the number having traded roughly upwards over the past few months.
Further, the stock’s PE also compares favorably with the Zacks Wireless Non-US sub-industry’s trailing twelve months PE ratio, which stands at 25.76. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that PLDT Inc. has a forward PE ratio (price relative to this year’s earnings) of just 13.72, so it is fair to say that a slightly more value-oriented path may be ahead for Apple stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, PLDT Inc. has a P/S ratio of about 2.23. This is a bit lower than the S&P 500 average, which comes in at 3.08 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
If anything, PHI is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, PLDT Inc. currently has a Zacks Value Style Score of ‘B’, putting it into the top 40% of all stocks we cover from this look. This makes PLDT Inc. a solid choice for value investors. Clearly, PHI is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though PLDT Inc. might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘B’. This gives PHI a Zacks VGM score—or its overarching fundamental grade—of ‘B’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been favorable. The full year has seen one estimate go up in the last two months, compared to no movement in the opposite direction.
This has had just a significant impact on the consensus estimate, as the full year estimate jumped 34.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Buoyed by the bullish analyst sentiments, the stock has a Zacks Rank #1 (Strong Buy) and we are looking for an outperformance from the company in the near term.
Bottom Line
PLDT Inc. is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Furthermore, a good Zacks Rank and a solid industry rank (among Top 21% of more than 250 industries) increases our confidence on the stock.
However, over the past five years, the Zacks Wireless Non-US industry has clearly underperformed the broader market, as you can see below:
So, value investors might want to wait for broader factors to turn favorable in this name first, but once that happens, this stock could be a compelling pick.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is PLDT Inc. a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put PLDT Inc. (PHI - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, PLDT Inc. has a trailing twelve months PE ratio of 14.86, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.30. If we focus on the stock’s long-term PE trend, the current level puts PLDT Inc.’s current PE ratio below its midpoint over the past five years, with the number having traded roughly upwards over the past few months.
Further, the stock’s PE also compares favorably with the Zacks Wireless Non-US sub-industry’s trailing twelve months PE ratio, which stands at 25.76. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that PLDT Inc. has a forward PE ratio (price relative to this year’s earnings) of just 13.72, so it is fair to say that a slightly more value-oriented path may be ahead for Apple stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, PLDT Inc. has a P/S ratio of about 2.23. This is a bit lower than the S&P 500 average, which comes in at 3.08 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
If anything, PHI is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, PLDT Inc. currently has a Zacks Value Style Score of ‘B’, putting it into the top 40% of all stocks we cover from this look. This makes PLDT Inc. a solid choice for value investors. Clearly, PHI is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though PLDT Inc. might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘B’. This gives PHI a Zacks VGM score—or its overarching fundamental grade—of ‘B’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been favorable. The full year has seen one estimate go up in the last two months, compared to no movement in the opposite direction.
This has had just a significant impact on the consensus estimate, as the full year estimate jumped 34.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
PLDT Inc. Price and Consensus
PLDT Inc. Price and Consensus | PLDT Inc. Quote
Buoyed by the bullish analyst sentiments, the stock has a Zacks Rank #1 (Strong Buy) and we are looking for an outperformance from the company in the near term.
Bottom Line
PLDT Inc. is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Furthermore, a good Zacks Rank and a solid industry rank (among Top 21% of more than 250 industries) increases our confidence on the stock.
However, over the past five years, the Zacks Wireless Non-US industry has clearly underperformed the broader market, as you can see below:
So, value investors might want to wait for broader factors to turn favorable in this name first, but once that happens, this stock could be a compelling pick.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>