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Are Investors Undervaluing Tactile Systems Technology (TCMD) Right Now?
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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.
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 Tactile Systems Technology (TCMD - Free Report) . TCMD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.88, which compares to its industry's average of 28.74. Over the past 52 weeks, TCMD's Forward P/E has been as high as 26.13 and as low as 13.41, with a median of 18.82.
Another valuation metric that we should highlight is TCMD's P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with 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 4.16. TCMD's P/B has been as high as 2.23 and as low as 1.08, with a median of 1.59, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TCMD has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.47.
Finally, we should also recognize that TCMD has a P/CF ratio of 13.57. 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. TCMD's P/CF compares to its industry's average P/CF of 20.70. Over the past 52 weeks, TCMD's P/CF has been as high as 21.40 and as low as 7.66, with a median of 14.00.
Value investors will likely look at more than just these metrics, but the above data helps show that Tactile Systems Technology is likely undervalued currently. And when considering the strength of its earnings outlook, TCMD sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Tactile Systems Technology (TCMD) Right Now?
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.
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 Tactile Systems Technology (TCMD - Free Report) . TCMD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.88, which compares to its industry's average of 28.74. Over the past 52 weeks, TCMD's Forward P/E has been as high as 26.13 and as low as 13.41, with a median of 18.82.
Another valuation metric that we should highlight is TCMD's P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with 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 4.16. TCMD's P/B has been as high as 2.23 and as low as 1.08, with a median of 1.59, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TCMD has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.47.
Finally, we should also recognize that TCMD has a P/CF ratio of 13.57. 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. TCMD's P/CF compares to its industry's average P/CF of 20.70. Over the past 52 weeks, TCMD's P/CF has been as high as 21.40 and as low as 7.66, with a median of 14.00.
Value investors will likely look at more than just these metrics, but the above data helps show that Tactile Systems Technology is likely undervalued currently. And when considering the strength of its earnings outlook, TCMD sticks out as one of the market's strongest value stocks.