While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Tech Data . TECD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.93, while its industry has an average P/E of 9.73. Over the last 12 months, TECD's Forward P/E has been as high as 9.27 and as low as 6.44, with a median of 7.71.
Another valuation metric that we should highlight is TECD's P/B ratio of 1.35. 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 1.36. TECD's P/B has been as high as 1.39 and as low as 0.91, with a median of 1.13, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TECD has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.24.
Finally, investors should note that TECD has a P/CF ratio of 7.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.17. Over the past 52 weeks, TECD's P/CF has been as high as 12.38 and as low as 6.43, with a median of 8.99.
These are only a few of the key metrics included in Tech Data'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, TECD looks like an impressive value stock at the moment.
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Is Tech Data (TECD) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Tech Data . TECD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.93, while its industry has an average P/E of 9.73. Over the last 12 months, TECD's Forward P/E has been as high as 9.27 and as low as 6.44, with a median of 7.71.
Another valuation metric that we should highlight is TECD's P/B ratio of 1.35. 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 1.36. TECD's P/B has been as high as 1.39 and as low as 0.91, with a median of 1.13, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TECD has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.24.
Finally, investors should note that TECD has a P/CF ratio of 7.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.17. Over the past 52 weeks, TECD's P/CF has been as high as 12.38 and as low as 6.43, with a median of 8.99.
These are only a few of the key metrics included in Tech Data'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, TECD looks like an impressive value stock at the moment.