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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Methode (MEI - Free Report) . MEI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.29. This compares to its industry's average Forward P/E of 23.93. Over the past year, MEI's Forward P/E has been as high as 14.43 and as low as 6.64, with a median of 9.15.
We also note that MEI holds a PEG ratio of 0.85. 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. MEI's industry has an average PEG of 2.15 right now. Over the last 12 months, MEI's PEG has been as high as 0.96 and as low as 0.82, with a median of 0.85.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MEI has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.27.
Finally, investors will want to recognize that MEI has a P/CF ratio of 7.67. 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 19.84. Over the past year, MEI's P/CF has been as high as 25.04 and as low as 6.71, with a median of 13.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Methode is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEI feels like a great value stock at the moment.
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Is Methode (MEI) Stock Undervalued Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Methode (MEI - Free Report) . MEI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.29. This compares to its industry's average Forward P/E of 23.93. Over the past year, MEI's Forward P/E has been as high as 14.43 and as low as 6.64, with a median of 9.15.
We also note that MEI holds a PEG ratio of 0.85. 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. MEI's industry has an average PEG of 2.15 right now. Over the last 12 months, MEI's PEG has been as high as 0.96 and as low as 0.82, with a median of 0.85.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MEI has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.27.
Finally, investors will want to recognize that MEI has a P/CF ratio of 7.67. 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 19.84. Over the past year, MEI's P/CF has been as high as 25.04 and as low as 6.71, with a median of 13.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Methode is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEI feels like a great value stock at the moment.