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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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Diodes (DIOD - Free Report) . DIOD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DIOD has a P/S ratio of 1.55. This compares to its industry's average P/S of 2.07.
Finally, we should also recognize that DIOD has a P/CF ratio of 8.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.46. Over the past 52 weeks, DIOD's P/CF has been as high as 15.99 and as low as 7.16, with a median of 8.92.
These are only a few of the key metrics included in Diodes'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, DIOD looks like an impressive value stock at the moment.
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Is Diodes (DIOD) Stock Undervalued Right Now?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Diodes (DIOD - Free Report) . DIOD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DIOD has a P/S ratio of 1.55. This compares to its industry's average P/S of 2.07.
Finally, we should also recognize that DIOD has a P/CF ratio of 8.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.46. Over the past 52 weeks, DIOD's P/CF has been as high as 15.99 and as low as 7.16, with a median of 8.92.
These are only a few of the key metrics included in Diodes'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, DIOD looks like an impressive value stock at the moment.