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Should Value Investors Buy Playtika (PLTK) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company value investors might notice is Playtika (PLTK - Free Report) . PLTK is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

PLTK is also sporting a PEG ratio of 0.80. 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. PLTK's industry has an average PEG of 1.60 right now. Over the past 52 weeks, PLTK's PEG has been as high as 2.80 and as low as 0.80, with a median of 1.20.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PLTK has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.38.

Value investors will likely look at more than just these metrics, but the above data helps show that Playtika is likely undervalued currently. And when considering the strength of its earnings outlook, PLTK sticks out as one of the market's strongest value stocks.

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