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Should Value Investors Buy Internet Initiative Japan (IIJIY) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

Internet Initiative Japan (IIJIY - Free Report) is a stock many investors are watching right now. IIJIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 20.48, which compares to its industry's average of 31.08. Over the last 12 months, IIJIY's Forward P/E has been as high as 25.10 and as low as 17.56, with a median of 20.20.

Investors should also note that IIJIY holds a PEG ratio of 1.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IIJIY's PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, IIJIY's PEG has been as high as 1.66 and as low as 1.30, with a median of 1.41.

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


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