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Should Value Investors Buy Scor (SCRYY) Stock?

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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 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 to watch right now is Scor (SCRYY - Free Report) . SCRYY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 9.11. Over the past year, SCRYY's Forward P/E has been as high as 28.38 and as low as -302.80, with a median of 7.31.

Another valuation metric that we should highlight is SCRYY's P/B ratio of 1.25. 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 2.77. SCRYY's P/B has been as high as 1.32 and as low as 0.76, with a median of 1.01, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SCRYY has a P/S ratio of 0.41. This compares to its industry's average P/S of 1.1.

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

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