Back to top

Should Value Investors Buy Vishay Intertechnology (VSH) Stock?

Read MoreHide Full Article

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 23.19. Over the past 52 weeks, VSH's Forward P/E has been as high as 14.18 and as low as 7.61, with a median of 10.11.

VSH is also sporting a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VSH's PEG compares to its industry's average PEG of 1.69. Over the past 52 weeks, VSH's PEG has been as high as 2.67 and as low as 0.83, with a median of 1.10.

We should also highlight that VSH has a P/B ratio of 1.99. 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. VSH's current P/B looks attractive when compared to its industry's average P/B of 2.71. Over the past 12 months, VSH's P/B has been as high as 2.72 and as low as 1.66, with a median of 2.03.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VSH has a P/S ratio of 0.96. This compares to its industry's average P/S of 2.17.

Finally, we should also recognize that VSH has a P/CF ratio of 5.46. 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. VSH's current P/CF looks attractive when compared to its industry's average P/CF of 13.37. Within the past 12 months, VSH's P/CF has been as high as 22.66 and as low as 4.77, with a median of 14.40.

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




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Vishay Intertechnology, Inc. (VSH) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in