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Is Turtle Beach (HEAR) a Great Value Stock Right Now?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Turtle Beach (HEAR - Free Report) . HEAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

We also note that HEAR holds a PEG ratio of 0.93. 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. HEAR's industry currently sports an average PEG of 2.23. HEAR's PEG has been as high as 1.16 and as low as 0.90, with a median of 1.04, all within the past year.

Another valuation metric that we should highlight is HEAR's P/B ratio of 2.72. The P/B ratio pits a stock's market value against 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 3.16. Over the past year, HEAR's P/B has been as high as 4.23 and as low as 0.97, with a median of 2.93.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HEAR has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.2.

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


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