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Should Value Investors Buy Fujifilm (FUJIY) Stock?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Fujifilm (FUJIY - Free Report) . FUJIY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.86. This compares to its industry's average Forward P/E of 16.17. Over the past 52 weeks, FUJIY's Forward P/E has been as high as 15.86 and as low as 11.58, with a median of 13.37.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUJIY has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.05.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fujifilm is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUJIY feels like a great value stock at the moment.


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