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Is Ultra Clean Holdings (UCTT) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Ultra Clean Holdings (UCTT - Free Report) . UCTT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.09. This compares to its industry's average Forward P/E of 26.38. Over the past year, UCTT's Forward P/E has been as high as 24.71 and as low as 6.56, with a median of 13.86.
Another valuation metric that we should highlight is UCTT's P/B ratio of 1.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.29. Over the past year, UCTT's P/B has been as high as 2.31 and as low as 0.99, with a median of 1.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. UCTT has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.84.
These are just a handful of the figures considered in Ultra Clean Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UCTT is an impressive value stock right now.
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Is Ultra Clean Holdings (UCTT) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Ultra Clean Holdings (UCTT - Free Report) . UCTT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.09. This compares to its industry's average Forward P/E of 26.38. Over the past year, UCTT's Forward P/E has been as high as 24.71 and as low as 6.56, with a median of 13.86.
Another valuation metric that we should highlight is UCTT's P/B ratio of 1.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.29. Over the past year, UCTT's P/B has been as high as 2.31 and as low as 0.99, with a median of 1.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. UCTT has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.84.
These are just a handful of the figures considered in Ultra Clean Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UCTT is an impressive value stock right now.