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Is TiVo (TIVO) a Great Value Stock Right Now?

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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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is TiVo (TIVO - Free Report) . TIVO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.89, which compares to its industry's average of 25.05. 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 9.11.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TIVO has a P/S ratio of 1.44. This compares to its industry's average P/S of 2.72.

Finally, investors will want to recognize that TIVO has a P/CF ratio of 11.88. 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. TIVO's current P/CF looks attractive when compared to its industry's average P/CF of 20. TIVO's P/CF has been as high as 14.48 and as low as 6.92, with a median of 11.71, all within the past year.

These are only a few of the key metrics included in TiVo's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TIVO looks like an impressive value stock at the moment.


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