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Is TripAdvisor (TRIP) a Great Value Stock 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

TripAdvisor (TRIP - Free Report) is a stock many investors are watching right now. TRIP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.2, while its industry has an average P/E of 24.29. Over the past year, TRIP's Forward P/E has been as high as 13.51 and as low as 7.08, with a median of 10.62.

Investors should also note that TRIP holds a PEG ratio of 1.02. 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. TRIP's industry currently sports an average PEG of 1.33. Over the last 12 months, TRIP's PEG has been as high as 3.38 and as low as 0.57, with a median of 2.04.

Investors should also recognize that TRIP has a P/B ratio of 3.49. The P/B is a method of comparing a stock's market value to 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 4.88. TRIP's P/B has been as high as 3.54 and as low as 1.91, with a median of 2.60, 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TRIP has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.24.

Another great Internet - Commerce stock you could consider is Travelzoo (TZOO - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Travelzoo also has a P/B ratio of -54.44 compared to its industry's price-to-book ratio of 4.88. Over the past year, its P/B ratio has been as high as 107.88, as low as -158.31, with a median of 32.81.

These are just a handful of the figures considered in TripAdvisor and Travelzoo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TRIP and TZOO is an impressive value stock right now.


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