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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Colfax is a stock many investors are watching right now. CFX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that CFX has a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CFX's industry has an average PEG of 2.06 right now. Over the last 12 months, CFX's PEG has been as high as 2.43 and as low as 0.71, with a median of 1.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFX has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Colfax is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CFX feels like a great value stock at the moment.
Image: Bigstock
Is Colfax (CFX) a Great Value Stock Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Colfax is a stock many investors are watching right now. CFX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that CFX has a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CFX's industry has an average PEG of 2.06 right now. Over the last 12 months, CFX's PEG has been as high as 2.43 and as low as 0.71, with a median of 1.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFX has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Colfax is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CFX feels like a great value stock at the moment.