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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Intel (INTC - Free Report) is a stock many investors are watching right now. INTC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.46, which compares to its industry's average of 15.98. Over the last 12 months, INTC's Forward P/E has been as high as 12.86 and as low as 9.55, with a median of 10.84.
Investors will also notice that INTC has a PEG ratio of 1.53. 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. INTC's PEG compares to its industry's average PEG of 2.07. Within the past year, INTC's PEG has been as high as 1.62 and as low as 1.13, with a median of 1.37.
Investors should also recognize that INTC has a P/B ratio of 3. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. INTC's current P/B looks attractive when compared to its industry's average P/B of 4.17. INTC's P/B has been as high as 3.58 and as low as 2.64, with a median of 2.98, over the past year.
Finally, investors should note that INTC has a P/CF ratio of 7.73. 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. INTC's current P/CF looks attractive when compared to its industry's average P/CF of 10.41. INTC's P/CF has been as high as 10.30 and as low as 6.59, with a median of 7.88, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Intel is likely undervalued currently. And when considering the strength of its earnings outlook, INTC sticks out at as one of the market's strongest value stocks.
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Is Intel (INTC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Intel (INTC - Free Report) is a stock many investors are watching right now. INTC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.46, which compares to its industry's average of 15.98. Over the last 12 months, INTC's Forward P/E has been as high as 12.86 and as low as 9.55, with a median of 10.84.
Investors will also notice that INTC has a PEG ratio of 1.53. 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. INTC's PEG compares to its industry's average PEG of 2.07. Within the past year, INTC's PEG has been as high as 1.62 and as low as 1.13, with a median of 1.37.
Investors should also recognize that INTC has a P/B ratio of 3. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. INTC's current P/B looks attractive when compared to its industry's average P/B of 4.17. INTC's P/B has been as high as 3.58 and as low as 2.64, with a median of 2.98, over the past year.
Finally, investors should note that INTC has a P/CF ratio of 7.73. 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. INTC's current P/CF looks attractive when compared to its industry's average P/CF of 10.41. INTC's P/CF has been as high as 10.30 and as low as 6.59, with a median of 7.88, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Intel is likely undervalued currently. And when considering the strength of its earnings outlook, INTC sticks out at as one of the market's strongest value stocks.