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.
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 Diodes (DIOD - Free Report) . DIOD 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 11.36, while its industry has an average P/E of 11.59. Over the past year, DIOD's Forward P/E has been as high as 18.46 and as low as 11.36, with a median of 14.63.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DIOD has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.9.
Finally, investors will want to recognize that DIOD has a P/CF ratio of 7.47. 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. DIOD's P/CF compares to its industry's average P/CF of 15.94. Over the past 52 weeks, DIOD's P/CF has been as high as 16.91 and as low as 7.34, with a median of 11.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Diodes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DIOD 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
Is Diodes (DIOD) a Great Value Stock 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.
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 Diodes (DIOD - Free Report) . DIOD 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 11.36, while its industry has an average P/E of 11.59. Over the past year, DIOD's Forward P/E has been as high as 18.46 and as low as 11.36, with a median of 14.63.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DIOD has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.9.
Finally, investors will want to recognize that DIOD has a P/CF ratio of 7.47. 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. DIOD's P/CF compares to its industry's average P/CF of 15.94. Over the past 52 weeks, DIOD's P/CF has been as high as 16.91 and as low as 7.34, with a median of 11.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Diodes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DIOD feels like a great value stock at the moment.