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Are Investors Undervaluing Yext (YEXT) Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Yext (YEXT - Free Report) . YEXT is currently holding a Zacks Rank #2 (Buy) and 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 18.10. 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 1.66. This compares to its industry's average P/S of 1.82.

Finally, investors should note 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 33.27. 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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