Back to top

Should Value Investors Buy TDK (TTDKY) Stock?

Read MoreHide Full Article

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is TDK (TTDKY - Free Report) . TTDKY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that TTDKY holds a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TTDKY's PEG compares to its industry's average PEG of 1.20. Over the past 52 weeks, TTDKY's PEG has been as high as 2.85 and as low as 1.16, with a median of 1.64.

Investors should also recognize that TTDKY has a P/B ratio of 1.71. The P/B is a method of comparing a stock's market value to 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 2.83. TTDKY's P/B has been as high as 1.79 and as low as 1.15, with a median of 1.46, over the past year.

Finally, investors should note that TTDKY has a P/CF ratio of 8.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TTDKY's current P/CF looks attractive when compared to its industry's average P/CF of 14.98. TTDKY's P/CF has been as high as 9.08 and as low as 4.01, with a median of 5.37, all within the past year.

These are only a few of the key metrics included in TDK'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, TTDKY looks like an impressive value stock at the moment.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

TDK Corp. (TTDKY) - free report >>

More from Zacks Tale of the Tape

You May Like