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Is SPX Flow (FLOW) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 SPX Flow (FLOW - Free Report) . FLOW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.50. This compares to its industry's average Forward P/E of 17.05. Over the last 12 months, FLOW's Forward P/E has been as high as 38.72 and as low as 15.41, with a median of 18.57.

We should also highlight that FLOW has a P/B ratio of 2.11. The P/B ratio pits a stock's market value against 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 4.81. Within the past 52 weeks, FLOW's P/B has been as high as 2.43 and as low as 1.67, with a median of 2.02.

Finally, our model also underscores that FLOW has a P/CF ratio of 14.15. 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. FLOW's current P/CF looks attractive when compared to its industry's average P/CF of 19.37. Over the past year, FLOW's P/CF has been as high as 21.48 and as low as 12.84, with a median of 17.50.

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


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