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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is On Deck Capital . ONDK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.22, while its industry has an average P/E of 9.53. Over the past year, ONDK's Forward P/E has been as high as 14.01 and as low as 6.28, with a median of 9.88.
Investors should also recognize that ONDK has a P/B ratio of 1.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.89. Over the past year, ONDK's P/B has been as high as 1.90 and as low as 0.73, with a median of 1.07.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ONDK has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.54.
Finally, we should also recognize that ONDK has a P/CF ratio of 2.92. 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. ONDK's current P/CF looks attractive when compared to its industry's average P/CF of 6.28. Over the past year, ONDK's P/CF has been as high as 6.76 and as low as 2.13, with a median of 3.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that On Deck Capital is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ONDK feels like a great value stock at the moment.
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Is On Deck Capital (ONDK) Stock Undervalued Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is On Deck Capital . ONDK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.22, while its industry has an average P/E of 9.53. Over the past year, ONDK's Forward P/E has been as high as 14.01 and as low as 6.28, with a median of 9.88.
Investors should also recognize that ONDK has a P/B ratio of 1.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.89. Over the past year, ONDK's P/B has been as high as 1.90 and as low as 0.73, with a median of 1.07.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ONDK has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.54.
Finally, we should also recognize that ONDK has a P/CF ratio of 2.92. 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. ONDK's current P/CF looks attractive when compared to its industry's average P/CF of 6.28. Over the past year, ONDK's P/CF has been as high as 6.76 and as low as 2.13, with a median of 3.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that On Deck Capital is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ONDK feels like a great value stock at the moment.