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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Ericsson (ERIC - Free Report) . ERIC 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 15.50, while its industry has an average P/E of 23.04. ERIC's Forward P/E has been as high as 22.81 and as low as 11.49, with a median of 17.01, all within the past year.
Another valuation metric that we should highlight is ERIC's P/B ratio of 3.43. Investors use the P/B ratio to look at a stock's market value versus 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 6.90. Within the past 52 weeks, ERIC's P/B has been as high as 3.80 and as low as 2.37, with a median of 3.38.
Finally, our model also underscores that ERIC has a P/CF ratio of 24.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 54.44. ERIC's P/CF has been as high as 64.11 and as low as -16,579.61, with a median of 24.65, all within the past year.
These are only a few of the key metrics included in Ericsson's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ERIC looks like an impressive value stock at the moment.
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Is Ericsson (ERIC) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Ericsson (ERIC - Free Report) . ERIC 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 15.50, while its industry has an average P/E of 23.04. ERIC's Forward P/E has been as high as 22.81 and as low as 11.49, with a median of 17.01, all within the past year.
Another valuation metric that we should highlight is ERIC's P/B ratio of 3.43. Investors use the P/B ratio to look at a stock's market value versus 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 6.90. Within the past 52 weeks, ERIC's P/B has been as high as 3.80 and as low as 2.37, with a median of 3.38.
Finally, our model also underscores that ERIC has a P/CF ratio of 24.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 54.44. ERIC's P/CF has been as high as 64.11 and as low as -16,579.61, with a median of 24.65, all within the past year.
These are only a few of the key metrics included in Ericsson's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ERIC looks like an impressive value stock at the moment.