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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.
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 value investors might notice is CDW (CDW - Free Report) . CDW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.79. This compares to its industry's average Forward P/E of 18.91. Over the past 52 weeks, CDW's Forward P/E has been as high as 21.48 and as low as 14.64, with a median of 17.95.
Investors should also recognize that CDW has a P/B ratio of 8.61. 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. CDW's current P/B looks attractive when compared to its industry's average P/B of 19.18. Over the past 12 months, CDW's P/B has been as high as 14.04 and as low as 8.20, with a median of 9.98.
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. CDW has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.57.
Another great Computers - IT Services stock you could consider is Amdocs (DOX - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of Amdocs are currently trading at a forward earnings multiple of 11.05 and a PEG ratio of 1.25 compared to its industry's P/E and PEG ratios of 18.91 and 2.45, respectively.
Over the past year, DOX's P/E has been as high as 13.67, as low as 11.05, with a median of 12.19; its PEG ratio has been as high as 1.38, as low as 1.13, with a median of 1.26 during the same time period.
Amdocs sports a P/B ratio of 2.67 as well; this compares to its industry's price-to-book ratio of 19.18. In the past 52 weeks, DOX's P/B has been as high as 3.12, as low as 2.59, with a median of 2.86.
These are just a handful of the figures considered in CDW and Amdocs'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 CDW and DOX is an impressive value stock right now.
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Is CDW (CDW) a Great Value Stock 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.
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 value investors might notice is CDW (CDW - Free Report) . CDW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.79. This compares to its industry's average Forward P/E of 18.91. Over the past 52 weeks, CDW's Forward P/E has been as high as 21.48 and as low as 14.64, with a median of 17.95.
Investors should also recognize that CDW has a P/B ratio of 8.61. 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. CDW's current P/B looks attractive when compared to its industry's average P/B of 19.18. Over the past 12 months, CDW's P/B has been as high as 14.04 and as low as 8.20, with a median of 9.98.
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. CDW has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.57.
Another great Computers - IT Services stock you could consider is Amdocs (DOX - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of Amdocs are currently trading at a forward earnings multiple of 11.05 and a PEG ratio of 1.25 compared to its industry's P/E and PEG ratios of 18.91 and 2.45, respectively.
Over the past year, DOX's P/E has been as high as 13.67, as low as 11.05, with a median of 12.19; its PEG ratio has been as high as 1.38, as low as 1.13, with a median of 1.26 during the same time period.
Amdocs sports a P/B ratio of 2.67 as well; this compares to its industry's price-to-book ratio of 19.18. In the past 52 weeks, DOX's P/B has been as high as 3.12, as low as 2.59, with a median of 2.86.
These are just a handful of the figures considered in CDW and Amdocs'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 CDW and DOX is an impressive value stock right now.