We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Sensata Technologies Holding (ST) Right Now?
Read MoreHide Full Article
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.
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 Sensata Technologies Holding (ST - Free Report) . ST is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.88. This compares to its industry's average Forward P/E of 15.67. Over the last 12 months, ST's Forward P/E has been as high as 10.14 and as low as 5.38, with a median of 8.77.
We also note that ST holds a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ST's industry currently sports an average PEG of 1.60. ST's PEG has been as high as 1.37 and as low as 0.72, with a median of 1.13, all within the past year.
Another notable valuation metric for ST is its P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.12. Over the past 12 months, ST's P/B has been as high as 1.85 and as low as 0.91, with a median of 1.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ST has a P/S ratio of 1.71. This compares to its industry's average P/S of 2.59.
Finally, investors will want to recognize that ST has a P/CF ratio of 8.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.99. Within the past 12 months, ST's P/CF has been as high as 8.92 and as low as 4.54, with a median of 7.12.
Value investors will likely look at more than just these metrics, but the above data helps show that Sensata Technologies Holding is likely undervalued currently. And when considering the strength of its earnings outlook, ST sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Are Investors Undervaluing Sensata Technologies Holding (ST) Right Now?
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.
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 Sensata Technologies Holding (ST - Free Report) . ST is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.88. This compares to its industry's average Forward P/E of 15.67. Over the last 12 months, ST's Forward P/E has been as high as 10.14 and as low as 5.38, with a median of 8.77.
We also note that ST holds a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ST's industry currently sports an average PEG of 1.60. ST's PEG has been as high as 1.37 and as low as 0.72, with a median of 1.13, all within the past year.
Another notable valuation metric for ST is its P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.12. Over the past 12 months, ST's P/B has been as high as 1.85 and as low as 0.91, with a median of 1.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ST has a P/S ratio of 1.71. This compares to its industry's average P/S of 2.59.
Finally, investors will want to recognize that ST has a P/CF ratio of 8.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.99. Within the past 12 months, ST's P/CF has been as high as 8.92 and as low as 4.54, with a median of 7.12.
Value investors will likely look at more than just these metrics, but the above data helps show that Sensata Technologies Holding is likely undervalued currently. And when considering the strength of its earnings outlook, ST sticks out as one of the market's strongest value stocks.