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Are Investors Undervaluing Yext (YEXT) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Yext (YEXT - Free Report) . YEXT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.61 right now. For comparison, its industry sports an average P/E of 20.90. YEXT's Forward P/E has been as high as 21.17 and as low as 10.89, with a median of 12.56, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YEXT has a P/S ratio of 1. This compares to its industry's average P/S of 1.58.

Finally, our model also underscores that YEXT has a P/CF ratio of 26.83. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 39.59. Within the past 12 months, YEXT's P/CF has been as high as 227.93 and as low as -1262.83, with a median of 106.38.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Yext is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YEXT feels like a great value stock at the moment.

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