Back to top

Image: Bigstock

Should Value Investors Buy Computer Task Group (CTG) Stock?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Computer Task Group . CTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.21 right now. For comparison, its industry sports an average P/E of 19.20. Over the past year, CTG's Forward P/E has been as high as 14.64 and as low as 9.33, with a median of 11.62.

Investors will also notice that CTG has a PEG ratio of 0.95. 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. CTG's industry currently sports an average PEG of 1.83. CTG's PEG has been as high as 0.98 and as low as 0.62, with a median of 0.77, all within the past year.

These are just a handful of the figures considered in Computer Task Group'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 CTG is an impressive value stock right now.

Published in