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Is QuoteMedia (QMCI) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is QuoteMedia (QMCI - Free Report) . QMCI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. QMCI has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.53.

Finally, investors will want to recognize that QMCI has a P/CF ratio of 10.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.99. Over the past year, QMCI's P/CF has been as high as 12.03 and as low as 5.23, with a median of 8.92.

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


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