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Should Value Investors Buy Integer (ITGR) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Integer (ITGR - Free Report) . ITGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.87. This compares to its industry's average Forward P/E of 31.92. Over the past year, ITGR's Forward P/E has been as high as 22.21 and as low as 14.99, with a median of 18.64.

Investors should also note that ITGR holds a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ITGR's PEG compares to its industry's average PEG of 2.42.

Investors should also recognize that ITGR has a P/B ratio of 2.22. The P/B ratio pits a stock's market value against 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 3.62. 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 2.40.

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 2.02. This compares to its industry's average P/S of 3.22.

Finally, investors should note that ITGR has a P/CF ratio of 7.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.76. Over the past year, ITGR's P/CF has been as high as 13.19 and as low as 6.59, with a median of 8.17.

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


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