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Should Value Investors Buy CyberAgent (CYGIY) 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

CyberAgent (CYGIY - Free Report) is a stock many investors are watching right now. CYGIY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for CYGIY is its P/B ratio of 3.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.22. Over the past 12 months, CYGIY's P/B has been as high as 3.35 and as low as 1.84, with a median of 2.37.

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. CYGIY has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.46.

These are only a few of the key metrics included in CyberAgent's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CYGIY looks like an impressive value stock at the moment.

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