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Should Value Investors Buy PLDT (PHI) Stock?

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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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.56. This compares to its industry's average Forward P/E of 10.97. Over the last 12 months, PHI's Forward P/E has been as high as 12.36 and as low as 8.62, with a median of 11.09.

Finally, we should also recognize that PHI has a P/CF ratio of 4.11. 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. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 6.49. Over the past 52 weeks, PHI's P/CF has been as high as 4.82 and as low as 3.32, with a median of 4.09.

These are only a few of the key metrics included in PLDT'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, PHI looks like an impressive value stock at the moment.


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