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Is Yext (YEXT) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Yext (YEXT - Free Report) . YEXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.61. This compares to its industry's average Forward P/E of 21.68. Over the last 12 months, YEXT's Forward P/E has been as high as 21.17 and as low as 10.89, with a median of 12.56.

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. YEXT has a P/S ratio of 1.45. This compares to its industry's average P/S of 1.73.

Finally, we should also recognize that YEXT has a P/CF ratio of 26.83. 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. YEXT's P/CF compares to its industry's average P/CF of 38.90. Over the past year, YEXT's P/CF has been as high as 227.93 and as low as -1262.83, with a median of 106.38.

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

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