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Are Investors Undervaluing Weibo (WB) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Weibo (WB - Free Report) . WB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.99, which compares to its industry's average of 16.21. WB's Forward P/E has been as high as 7.12 and as low as 4.41, with a median of 5.72, all within the past year.

WB is also sporting a PEG ratio of 1.37. 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. WB's PEG compares to its industry's average PEG of 1.54. Within the past year, WB's PEG has been as high as 1.77 and as low as 1.13, with a median of 1.41.

These are just a handful of the figures considered in Weibo'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 WB is an impressive value stock right now.

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