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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Five9 (FIVN - Free Report) . FIVN is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We also note that FIVN holds a PEG ratio of 0.65. 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. FIVN's PEG compares to its industry's average PEG of 1.31. Within the past year, FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66.
Another valuation metric that we should highlight is FIVN's P/B ratio of 2.85. 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 solid versus its industry's average P/B of 5.93. Within the past 52 weeks, FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FIVN has a P/S ratio of 1.46. This compares to its industry's average P/S of 3.73.
Finally, we should also recognize that FIVN has a P/CF ratio of 12.96. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FIVN's P/CF compares to its industry's average P/CF of 17.95. FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Five9 is likely undervalued currently. And when considering the strength of its earnings outlook, FIVN sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Five9 (FIVN) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Five9 (FIVN - Free Report) . FIVN is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We also note that FIVN holds a PEG ratio of 0.65. 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. FIVN's PEG compares to its industry's average PEG of 1.31. Within the past year, FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66.
Another valuation metric that we should highlight is FIVN's P/B ratio of 2.85. 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 solid versus its industry's average P/B of 5.93. Within the past 52 weeks, FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FIVN has a P/S ratio of 1.46. This compares to its industry's average P/S of 3.73.
Finally, we should also recognize that FIVN has a P/CF ratio of 12.96. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FIVN's P/CF compares to its industry's average P/CF of 17.95. FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Five9 is likely undervalued currently. And when considering the strength of its earnings outlook, FIVN sticks out as one of the market's strongest value stocks.