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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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is TDK (TTDKY - Free Report) . TTDKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 22.32. Over the last 12 months, TTDKY's Forward P/E has been as high as 14.55 and as low as 9.24, with a median of 10.95.
Investors should also note that TTDKY holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TTDKY's industry has an average PEG of 2.73 right now. Over the past 52 weeks, TTDKY's PEG has been as high as 1.08 and as low as 0.43, with a median of 0.80.
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 0.86. This compares to its industry's average P/S of 1.31.
Finally, our model also underscores that TTDKY has a P/CF ratio of 4.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TTDKY's current P/CF looks attractive when compared to its industry's average P/CF of 17.16. TTDKY's P/CF has been as high as 6.45 and as low as 3.74, with a median of 4.54, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that TDK is likely undervalued currently. And when considering the strength of its earnings outlook, TTDKY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing TDK (TTDKY) Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is TDK (TTDKY - Free Report) . TTDKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 22.32. Over the last 12 months, TTDKY's Forward P/E has been as high as 14.55 and as low as 9.24, with a median of 10.95.
Investors should also note that TTDKY holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TTDKY's industry has an average PEG of 2.73 right now. Over the past 52 weeks, TTDKY's PEG has been as high as 1.08 and as low as 0.43, with a median of 0.80.
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 0.86. This compares to its industry's average P/S of 1.31.
Finally, our model also underscores that TTDKY has a P/CF ratio of 4.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TTDKY's current P/CF looks attractive when compared to its industry's average P/CF of 17.16. TTDKY's P/CF has been as high as 6.45 and as low as 3.74, with a median of 4.54, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that TDK is likely undervalued currently. And when considering the strength of its earnings outlook, TTDKY sticks out at as one of the market's strongest value stocks.