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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.
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.
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.
Ericsson (ERIC - Free Report) is a stock many investors are watching right now. ERIC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.34. This compares to its industry's average Forward P/E of 26.92. ERIC's Forward P/E has been as high as 18.61 and as low as 12.48, with a median of 15.38, all within the past year.
Investors should also recognize that ERIC has a P/B ratio of 3.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.37. Over the past year, ERIC's P/B has been as high as 3.73 and as low as 2.72, with a median of 3.22.
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. ERIC has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.96.
Finally, our model also underscores that ERIC has a P/CF ratio of 22.19. 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. ERIC's current P/CF looks attractive when compared to its industry's average P/CF of 44.86. ERIC's P/CF has been as high as 30.43 and as low as -47.05, with a median of 22.19, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ericsson is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ERIC feels like a great value stock at the moment.
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Is Ericsson (ERIC) Stock Undervalued Right Now?
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.
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.
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.
Ericsson (ERIC - Free Report) is a stock many investors are watching right now. ERIC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.34. This compares to its industry's average Forward P/E of 26.92. ERIC's Forward P/E has been as high as 18.61 and as low as 12.48, with a median of 15.38, all within the past year.
Investors should also recognize that ERIC has a P/B ratio of 3.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.37. Over the past year, ERIC's P/B has been as high as 3.73 and as low as 2.72, with a median of 3.22.
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. ERIC has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.96.
Finally, our model also underscores that ERIC has a P/CF ratio of 22.19. 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. ERIC's current P/CF looks attractive when compared to its industry's average P/CF of 44.86. ERIC's P/CF has been as high as 30.43 and as low as -47.05, with a median of 22.19, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ericsson is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ERIC feels like a great value stock at the moment.