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Should Value Investors Buy Integer (ITGR) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Integer (ITGR - Free Report) . ITGR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.79. This compares to its industry's average Forward P/E of 31.33. ITGR's Forward P/E has been as high as 22.21 and as low as 15.25, with a median of 18.90, all within the past year.

We also note that ITGR holds a PEG ratio of 1.33. 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. ITGR's PEG compares to its industry's average PEG of 2.34. Over the past 52 weeks, ITGR's PEG has been as high as 1.33 and as low as 1.19, with a median of 1.24.

Another notable valuation metric for ITGR is its P/B ratio of 2.32. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ITGR's current P/B looks attractive when compared to its industry's average P/B of 3.58. Over the past year, ITGR's P/B has been as high as 2.92 and as low as 2.05, with a median of 2.45.

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. ITGR has a P/S ratio of 2.11. This compares to its industry's average P/S of 3.39.

Finally, investors should note that ITGR has a P/CF ratio of 8.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.84. Over the past 52 weeks, ITGR's P/CF has been as high as 13.19 and as low as 6.59, with a median of 8.32.

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


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