The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Avid Technology . AVID is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.30, while its industry has an average P/E of 27.78. Over the past year, AVID's Forward P/E has been as high as 187.67 and as low as 6.05, with a median of 32.48.
We also note that AVID holds a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVID's industry has an average PEG of 2.23 right now. Over the past 52 weeks, AVID's PEG has been as high as 3.04 and as low as 0.61, with a median of 0.76.
These are only a few of the key metrics included in Avid Technology'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, AVID looks like an impressive value stock at the moment.
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Are Investors Undervaluing Avid Technology (AVID) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Avid Technology . AVID is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.30, while its industry has an average P/E of 27.78. Over the past year, AVID's Forward P/E has been as high as 187.67 and as low as 6.05, with a median of 32.48.
We also note that AVID holds a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVID's industry has an average PEG of 2.23 right now. Over the past 52 weeks, AVID's PEG has been as high as 3.04 and as low as 0.61, with a median of 0.76.
These are only a few of the key metrics included in Avid Technology'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, AVID looks like an impressive value stock at the moment.