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Should Value Investors Buy Sharp (SHCAY) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is Sharp (SHCAY - Free Report) . SHCAY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that SHCAY has a P/B ratio of 2.81. 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 attractive against its industry's average P/B of 2.93. SHCAY's P/B has been as high as 4.49 and as low as 2.06, with a median of 3.45, over the past year.

Finally, we should also recognize that SHCAY has a P/CF ratio of 4.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.13. Within the past 12 months, SHCAY's P/CF has been as high as 6.90 and as low as -9.02, with a median of -5.48.

These are just a handful of the figures considered in Sharp'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 SHCAY is an impressive value stock right now.


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