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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Amdocs (DOX - Free Report) . DOX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 17.62. Over the past 52 weeks, DOX's Forward P/E has been as high as 13.67 and as low as 11.05, with a median of 12.19.
Investors will also notice that DOX has a PEG ratio of 1.25. 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. DOX's industry currently sports an average PEG of 2.28. Over the last 12 months, DOX's PEG has been as high as 1.38 and as low as 1.13, with a median of 1.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Amdocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DOX feels like a great value stock at the moment.
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Is Amdocs (DOX) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Amdocs (DOX - Free Report) . DOX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 17.62. Over the past 52 weeks, DOX's Forward P/E has been as high as 13.67 and as low as 11.05, with a median of 12.19.
Investors will also notice that DOX has a PEG ratio of 1.25. 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. DOX's industry currently sports an average PEG of 2.28. Over the last 12 months, DOX's PEG has been as high as 1.38 and as low as 1.13, with a median of 1.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Amdocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DOX feels like a great value stock at the moment.