We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Lenovo (LNVGY - Free Report) . LNVGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.81, which compares to its industry's average of 16.69. Over the past year, LNVGY's Forward P/E has been as high as 20.46 and as low as 12.95, with a median of 14.75.
Investors will also notice that LNVGY has a PEG ratio of 1.66. 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. LNVGY's PEG compares to its industry's average PEG of 2.23. LNVGY's PEG has been as high as 1.88 and as low as 1.47, with a median of 1.64, all within the past year.
Another valuation metric that we should highlight is LNVGY's P/B ratio of 2.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.40. Over the past year, LNVGY's P/B has been as high as 2.73 and as low as 1.11, with a median of 1.82.
Finally, our model also underscores that LNVGY has a P/CF ratio of 8.65. 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 11.64. Within the past 12 months, LNVGY's P/CF has been as high as 12.11 and as low as 6.06, with a median of 9.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lenovo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LNVGY feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Lenovo (LNVGY) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Lenovo (LNVGY - Free Report) . LNVGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.81, which compares to its industry's average of 16.69. Over the past year, LNVGY's Forward P/E has been as high as 20.46 and as low as 12.95, with a median of 14.75.
Investors will also notice that LNVGY has a PEG ratio of 1.66. 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. LNVGY's PEG compares to its industry's average PEG of 2.23. LNVGY's PEG has been as high as 1.88 and as low as 1.47, with a median of 1.64, all within the past year.
Another valuation metric that we should highlight is LNVGY's P/B ratio of 2.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.40. Over the past year, LNVGY's P/B has been as high as 2.73 and as low as 1.11, with a median of 1.82.
Finally, our model also underscores that LNVGY has a P/CF ratio of 8.65. 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 11.64. Within the past 12 months, LNVGY's P/CF has been as high as 12.11 and as low as 6.06, with a median of 9.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lenovo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LNVGY feels like a great value stock at the moment.