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Are Investors Undervaluing Vontier (VNT) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Vontier (VNT - Free Report) . VNT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.75, while its industry has an average P/E of 26.60. Over the past 52 weeks, VNT's Forward P/E has been as high as 12.96 and as low as 8.65, with a median of 11.45.
VNT is also sporting a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VNT's PEG compares to its industry's average PEG of 1.43. Over the last 12 months, VNT's PEG has been as high as 1.78 and as low as 0.86, with a median of 1.33.
Another notable valuation metric for VNT is its P/B ratio of 5.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. VNT's current P/B looks attractive when compared to its industry's average P/B of 7.08. Over the past 12 months, VNT's P/B has been as high as 5.82 and as low as 3.75, with a median of 4.96.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VNT has a P/S ratio of 2.07. This compares to its industry's average P/S of 2.23.
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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Are Investors Undervaluing Vontier (VNT) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Vontier (VNT - Free Report) . VNT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.75, while its industry has an average P/E of 26.60. Over the past 52 weeks, VNT's Forward P/E has been as high as 12.96 and as low as 8.65, with a median of 11.45.
VNT is also sporting a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VNT's PEG compares to its industry's average PEG of 1.43. Over the last 12 months, VNT's PEG has been as high as 1.78 and as low as 0.86, with a median of 1.33.
Another notable valuation metric for VNT is its P/B ratio of 5.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. VNT's current P/B looks attractive when compared to its industry's average P/B of 7.08. Over the past 12 months, VNT's P/B has been as high as 5.82 and as low as 3.75, with a median of 4.96.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VNT has a P/S ratio of 2.07. This compares to its industry's average P/S of 2.23.
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.