Back to top

Are Investors Undervaluing Advantest Corp. (ATEYY) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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 to watch right now is Advantest Corp. (ATEYY - Free Report) . ATEYY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.98 right now. For comparison, its industry sports an average P/E of 21.05. Over the last 12 months, ATEYY's Forward P/E has been as high as 26.43 and as low as 9.64, with a median of 14.65.

Investors will also notice that ATEYY has a PEG ratio of 0.71. 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. ATEYY's PEG compares to its industry's average PEG of 1.59. Within the past year, ATEYY's PEG has been as high as 1.71 and as low as 0.62, with a median of 0.95.

Investors should also recognize that ATEYY has a P/B ratio of 3.04. 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 4.07. ATEYY's P/B has been as high as 4.07 and as low as 2.39, with a median of 3.27, over the past year.

Finally, we should also recognize that ATEYY has a P/CF ratio of 12.37. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.56. ATEYY's P/CF has been as high as 24.72 and as low as 9.73, with a median of 14.34, all within the past year.

These are only a few of the key metrics included in Advantest Corp.'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, ATEYY 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:


Advantest Corp. (ATEYY) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in