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Are Investors Undervaluing CSG Systems (CSGS) 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.

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.

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 CSG Systems (CSGS - Free Report) . CSGS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.69 right now. For comparison, its industry sports an average P/E of 19.28. CSGS's Forward P/E has been as high as 16.35 and as low as 9.75, with a median of 12.64, all within the past year.

Finally, we should also recognize that CSGS has a P/CF ratio of 10.43. 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 12.38. Over the past year, CSGS's P/CF has been as high as 14.90 and as low as 7.81, with a median of 10.83.

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


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