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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 TDK (TTDKY - Free Report) . TTDKY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 20.52. Over the last 12 months, TTDKY's Forward P/E has been as high as 14.97 and as low as 9.24, with a median of 11.50.
We also note that TTDKY holds a PEG ratio of 0.90. 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. TTDKY's industry currently sports an average PEG of 2.44. Within the past year, TTDKY's PEG has been as high as 1.08 and as low as 0.43, with a median of 0.80.
Investors should also recognize that TTDKY has a P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TTDKY's current P/B looks attractive when compared to its industry's average P/B of 3.50. TTDKY's P/B has been as high as 1.63 and as low as 0.98, with a median of 1.22, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TTDKY has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.45.
Finally, our model also underscores that TTDKY has a P/CF ratio of 4.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.21. Over the past year, TTDKY's P/CF has been as high as 6.67 and as low as 3.74, with a median of 4.62.
These are only a few of the key metrics included in TDK'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, TTDKY looks like an impressive value stock at the moment.
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Should Value Investors Buy TDK (TTDKY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 TDK (TTDKY - Free Report) . TTDKY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 20.52. Over the last 12 months, TTDKY's Forward P/E has been as high as 14.97 and as low as 9.24, with a median of 11.50.
We also note that TTDKY holds a PEG ratio of 0.90. 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. TTDKY's industry currently sports an average PEG of 2.44. Within the past year, TTDKY's PEG has been as high as 1.08 and as low as 0.43, with a median of 0.80.
Investors should also recognize that TTDKY has a P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TTDKY's current P/B looks attractive when compared to its industry's average P/B of 3.50. TTDKY's P/B has been as high as 1.63 and as low as 0.98, with a median of 1.22, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TTDKY has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.45.
Finally, our model also underscores that TTDKY has a P/CF ratio of 4.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.21. Over the past year, TTDKY's P/CF has been as high as 6.67 and as low as 3.74, with a median of 4.62.
These are only a few of the key metrics included in TDK'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, TTDKY looks like an impressive value stock at the moment.