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Is Open Text (OTEX) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Open Text (OTEX - Free Report) . OTEX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OTEX has a P/S ratio of 1.64. This compares to its industry's average P/S of 4.33.
Finally, we should also recognize that OTEX has a P/CF ratio of 8.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OTEX's current P/CF looks attractive when compared to its industry's average P/CF of 22.40. Over the past year, OTEX's P/CF has been as high as 8.83 and as low as 4.55, with a median of 6.00.
These are just a handful of the figures considered in Open Text'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 OTEX is an impressive value stock right now.
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Is Open Text (OTEX) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Open Text (OTEX - Free Report) . OTEX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OTEX has a P/S ratio of 1.64. This compares to its industry's average P/S of 4.33.
Finally, we should also recognize that OTEX has a P/CF ratio of 8.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OTEX's current P/CF looks attractive when compared to its industry's average P/CF of 22.40. Over the past year, OTEX's P/CF has been as high as 8.83 and as low as 4.55, with a median of 6.00.
These are just a handful of the figures considered in Open Text'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 OTEX is an impressive value stock right now.