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Is Triple-S Management (GTS) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Triple-S Management is a stock many investors are watching right now. GTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.09 right now. For comparison, its industry sports an average P/E of 15.27. GTS's Forward P/E has been as high as 20.88 and as low as -9.61, with a median of 10.75, all within the past year.

Investors will also notice that GTS has a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GTS's industry has an average PEG of 1.14 right now. Within the past year, GTS's PEG has been as high as 2.09 and as low as -0.96, with a median of 1.07.

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. GTS has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.48.

Value investors will likely look at more than just these metrics, but the above data helps show that Triple-S Management is likely undervalued currently. And when considering the strength of its earnings outlook, GTS sticks out at as one of the market's strongest value stocks.

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