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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Amdocs (DOX - Free Report) . DOX 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 13.63. This compares to its industry's average Forward P/E of 19.52. Over the past 52 weeks, DOX's Forward P/E has been as high as 16.42 and as low as 12.21, with a median of 14.61.
Investors will also notice that DOX has a PEG ratio of 1.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOX's industry currently sports an average PEG of 1.77. DOX's PEG has been as high as 2.10 and as low as 1.44, with a median of 1.72, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DOX has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.13.
Finally, our model also underscores that DOX has a P/CF ratio of 14.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DOX's current P/CF looks attractive when compared to its industry's average P/CF of 46.01. Over the past year, DOX's P/CF has been as high as 16.75 and as low as 12.93, with a median of 14.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Amdocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DOX feels like a great value stock at the moment.
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Is Amdocs (DOX) a Great Value Stock 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Amdocs (DOX - Free Report) . DOX 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 13.63. This compares to its industry's average Forward P/E of 19.52. Over the past 52 weeks, DOX's Forward P/E has been as high as 16.42 and as low as 12.21, with a median of 14.61.
Investors will also notice that DOX has a PEG ratio of 1.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOX's industry currently sports an average PEG of 1.77. DOX's PEG has been as high as 2.10 and as low as 1.44, with a median of 1.72, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DOX has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.13.
Finally, our model also underscores that DOX has a P/CF ratio of 14.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DOX's current P/CF looks attractive when compared to its industry's average P/CF of 46.01. Over the past year, DOX's P/CF has been as high as 16.75 and as low as 12.93, with a median of 14.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Amdocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DOX feels like a great value stock at the moment.