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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Five9 (FIVN - Free Report) . FIVN is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
FIVN is also sporting a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FIVN's industry has an average PEG of 1.29 right now. FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66, all within the past year.
We should also highlight that FIVN has a P/B ratio of 2.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FIVN's current P/B looks attractive when compared to its industry's average P/B of 5.83. FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59, over the past year.
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. FIVN has a P/S ratio of 1.37. This compares to its industry's average P/S of 3.74.
Finally, we should also recognize that FIVN has a P/CF ratio of 12.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FIVN's current P/CF looks attractive when compared to its industry's average P/CF of 17.69. Over the past 52 weeks, FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85.
These are only a few of the key metrics included in Five9's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FIVN looks like an impressive value stock at the moment.
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Is Five9 (FIVN) a Great Value Stock Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Five9 (FIVN - Free Report) . FIVN is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
FIVN is also sporting a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FIVN's industry has an average PEG of 1.29 right now. FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66, all within the past year.
We should also highlight that FIVN has a P/B ratio of 2.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FIVN's current P/B looks attractive when compared to its industry's average P/B of 5.83. FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59, over the past year.
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. FIVN has a P/S ratio of 1.37. This compares to its industry's average P/S of 3.74.
Finally, we should also recognize that FIVN has a P/CF ratio of 12.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FIVN's current P/CF looks attractive when compared to its industry's average P/CF of 17.69. Over the past 52 weeks, FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85.
These are only a few of the key metrics included in Five9's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FIVN looks like an impressive value stock at the moment.