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Is TDK (TTDKY) a Great Value Stock 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is TDK (TTDKY - Free Report) . TTDKY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

TTDKY is also sporting a PEG ratio of 1.07. 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 industry currently sports an average PEG of 1.18. TTDKY's PEG has been as high as 2.85 and as low as 0.99, with a median of 1.56, all within the past year.

Another valuation metric that we should highlight is TTDKY's P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.07. Over the past year, TTDKY's P/B has been as high as 1.79 and as low as 1.15, with a median of 1.48.

Finally, investors should note that TTDKY has a P/CF ratio of 8.74. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TTDKY's P/CF compares to its industry's average P/CF of 15.02. Over the past 52 weeks, TTDKY's P/CF has been as high as 9.08 and as low as 4.09, with a median of 5.63.

Value investors will likely look at more than just these metrics, but the above data helps show that TDK is likely undervalued currently. And when considering the strength of its earnings outlook, TTDKY sticks out at as one of the market's strongest value stocks.


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