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Are Investors Undervaluing Vodafone Group (VOD) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 stock to keep an eye on is Vodafone Group (VOD - Free Report) . VOD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 12.84. Over the past 52 weeks, VOD's Forward P/E has been as high as 12.33 and as low as 8.12, with a median of 9.80.

Investors will also notice that VOD has a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VOD's industry currently sports an average PEG of 0.50. Within the past year, VOD's PEG has been as high as 6.19 and as low as 0.43, with a median of 0.54.

These are only a few of the key metrics included in Vodafone Group'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, VOD looks like an impressive value stock at the moment.

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