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Should Value Investors Buy TiVo (TIVO) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

TiVo is a stock many investors are watching right now. TIVO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.94. This compares to its industry's average Forward P/E of 23.94. Over the past 52 weeks, TIVO's Forward P/E has been as high as 11.81 and as low as 6.91, with a median of 9.12.

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. TIVO has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.22.

Finally, we should also recognize that TIVO has a P/CF ratio of 11.68. 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. TIVO's current P/CF looks attractive when compared to its industry's average P/CF of 18.90. Over the past 52 weeks, TIVO's P/CF has been as high as 14.48 and as low as 6.92, with a median of 11.37.

These are just a handful of the figures considered in TiVo'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 TIVO is an impressive value stock right now.

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