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Should Value Investors Buy StarTek (SRT) 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.

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.

One stock to keep an eye on is StarTek . SRT 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 17.25, while its industry has an average P/E of 24.74. Over the past year, SRT's Forward P/E has been as high as 87.65 and as low as -38.97, with a median of 41.10.

Finally, our model also underscores that SRT has a P/CF ratio of 5.44. 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. SRT's current P/CF looks attractive when compared to its industry's average P/CF of 14.17. Within the past 12 months, SRT's P/CF has been as high as 120.98 and as low as -130.32, with a median of 14.53.

Value investors will likely look at more than just these metrics, but the above data helps show that StarTek is likely undervalued currently. And when considering the strength of its earnings outlook, SRT sticks out at as one of the market's strongest value stocks.

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