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Are Investors Undervaluing Yext (YEXT) Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Yext (YEXT - Free Report) is a stock many investors are watching right now. YEXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.61, while its industry has an average P/E of 21.13. Over the past year, 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YEXT has a P/S ratio of 1.42. This compares to its industry's average P/S of 1.83.

Finally, our model also underscores that YEXT has a P/CF ratio of 26.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. YEXT's P/CF compares to its industry's average P/CF of 38.57. Over the past 52 weeks, 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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