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 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 company to watch right now is Convergys . CVG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.92, which compares to its industry's average of 22.99. Over the last 12 months, CVG's Forward P/E has been as high as 15 and as low as 11.50, with a median of 13.78.
CVG is also sporting a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVG's industry currently sports an average PEG of 2.15. Over the past 52 weeks, CVG's PEG has been as high as 1.95 and as low as 1.28, with a median of 1.52.
Finally, investors will want to recognize that CVG has a P/CF ratio of 11.09. 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. CVG's P/CF compares to its industry's average P/CF of 19.37. Within the past 12 months, CVG's P/CF has been as high as 11.86 and as low as 8.31, with a median of 9.55.
These are just a handful of the figures considered in Convergys's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVG is an impressive value stock right now.
Image: Bigstock
Should Value Investors Buy Convergys (CVG) Stock?
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 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 company to watch right now is Convergys . CVG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.92, which compares to its industry's average of 22.99. Over the last 12 months, CVG's Forward P/E has been as high as 15 and as low as 11.50, with a median of 13.78.
CVG is also sporting a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVG's industry currently sports an average PEG of 2.15. Over the past 52 weeks, CVG's PEG has been as high as 1.95 and as low as 1.28, with a median of 1.52.
Finally, investors will want to recognize that CVG has a P/CF ratio of 11.09. 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. CVG's P/CF compares to its industry's average P/CF of 19.37. Within the past 12 months, CVG's P/CF has been as high as 11.86 and as low as 8.31, with a median of 9.55.
These are just a handful of the figures considered in Convergys's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVG is an impressive value stock right now.