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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Celestica (CLS - Free Report) is a stock many investors are watching right now. CLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.88. This compares to its industry's average Forward P/E of 16.15. Over the past 52 weeks, CLS's Forward P/E has been as high as 16.31 and as low as 3.61, with a median of 9.85.
We also note that CLS holds a PEG ratio of 0.73. 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. CLS's industry currently sports an average PEG of 1.93. Over the last 12 months, CLS's PEG has been as high as 7.66 and as low as 0.63, with a median of 4.61.
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. CLS has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.23.
These are just a handful of the figures considered in Celestica'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 CLS is an impressive value stock right now.
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Should Value Investors Buy Celestica (CLS) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Celestica (CLS - Free Report) is a stock many investors are watching right now. CLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.88. This compares to its industry's average Forward P/E of 16.15. Over the past 52 weeks, CLS's Forward P/E has been as high as 16.31 and as low as 3.61, with a median of 9.85.
We also note that CLS holds a PEG ratio of 0.73. 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. CLS's industry currently sports an average PEG of 1.93. Over the last 12 months, CLS's PEG has been as high as 7.66 and as low as 0.63, with a median of 4.61.
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. CLS has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.23.
These are just a handful of the figures considered in Celestica'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 CLS is an impressive value stock right now.