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Is Magic Software (MGIC) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Magic Software (MGIC - Free Report) . MGIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.63 right now. For comparison, its industry sports an average P/E of 25.89. MGIC's Forward P/E has been as high as 16.22 and as low as 12.06, with a median of 13.99, all within the past year.
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. MGIC has a P/S ratio of 1.51. This compares to its industry's average P/S of 4.27.
Finally, we should also recognize that MGIC has a P/CF ratio of 13.95. 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. MGIC's current P/CF looks attractive when compared to its industry's average P/CF of 17.88. Within the past 12 months, MGIC's P/CF has been as high as 14.85 and as low as 11.44, with a median of 12.92.
These are just a handful of the figures considered in Magic Software's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MGIC is an impressive value stock right now.
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Is Magic Software (MGIC) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Magic Software (MGIC - Free Report) . MGIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.63 right now. For comparison, its industry sports an average P/E of 25.89. MGIC's Forward P/E has been as high as 16.22 and as low as 12.06, with a median of 13.99, all within the past year.
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. MGIC has a P/S ratio of 1.51. This compares to its industry's average P/S of 4.27.
Finally, we should also recognize that MGIC has a P/CF ratio of 13.95. 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. MGIC's current P/CF looks attractive when compared to its industry's average P/CF of 17.88. Within the past 12 months, MGIC's P/CF has been as high as 14.85 and as low as 11.44, with a median of 12.92.
These are just a handful of the figures considered in Magic Software's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MGIC is an impressive value stock right now.