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Should Value Investors Buy Yext (YEXT) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One stock to keep an eye on is Yext (YEXT - Free Report) . YEXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.61 right now. For comparison, its industry sports an average P/E of 20.27. 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 use the P/S ratio. The P/S ratio is calculated as price divided by 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 1.52. This compares to its industry's average P/S of 1.82.

Finally, investors will want to 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. This stock's P/CF looks attractive against its industry's average P/CF of 36.67. 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.

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

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