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Is TripAdvisor (TRIP) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is TripAdvisor (TRIP - Free Report) . TRIP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.2, while its industry has an average P/E of 25.48. Over the past year, TRIP's Forward P/E has been as high as 13.51 and as low as 7.08, with a median of 10.62.
We also note that TRIP holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRIP's PEG compares to its industry's average PEG of 1.53. Over the last 12 months, TRIP's PEG has been as high as 3.38 and as low as 0.57, with a median of 2.04.
We should also highlight that TRIP has a P/B ratio of 3.49. 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 4.78. Over the past 12 months, TRIP's P/B has been as high as 3.54 and as low as 1.91, with a median of 2.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TRIP has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.35.
Value investors will likely look at more than just these metrics, but the above data helps show that TripAdvisor is likely undervalued currently. And when considering the strength of its earnings outlook, TRIP sticks out as one of the market's strongest value stocks.
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Is TripAdvisor (TRIP) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is TripAdvisor (TRIP - Free Report) . TRIP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.2, while its industry has an average P/E of 25.48. Over the past year, TRIP's Forward P/E has been as high as 13.51 and as low as 7.08, with a median of 10.62.
We also note that TRIP holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRIP's PEG compares to its industry's average PEG of 1.53. Over the last 12 months, TRIP's PEG has been as high as 3.38 and as low as 0.57, with a median of 2.04.
We should also highlight that TRIP has a P/B ratio of 3.49. 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 4.78. Over the past 12 months, TRIP's P/B has been as high as 3.54 and as low as 1.91, with a median of 2.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TRIP has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.35.
Value investors will likely look at more than just these metrics, but the above data helps show that TripAdvisor is likely undervalued currently. And when considering the strength of its earnings outlook, TRIP sticks out as one of the market's strongest value stocks.