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Are Investors Undervaluing TiVo (TIVO) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 value investors might notice is TiVo . TIVO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TIVO has a P/S ratio of 1.5. This compares to its industry's average P/S of 2.7.

Finally, we should also recognize that TIVO has a P/CF ratio of 12.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.48. Over the past year, TIVO's P/CF has been as high as 14.48 and as low as 6.92, with a median of 11.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that TiVo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TIVO feels like a great value stock at the moment.

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