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Is Conduent Inc. (CNDT) Stock Undervalued Right Now?

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Zacks Equity Research
·2 min read
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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Conduent Inc. (CNDT) is a stock many investors are watching right now. CNDT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.76 right now. For comparison, its industry sports an average P/E of 20.41. Over the last 12 months, CNDT's Forward P/E has been as high as 16.45 and as low as 2.91, with a median of 7.33.

Finally, investors should note that CNDT has a P/CF ratio of 2.74. 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. CNDT's current P/CF looks attractive when compared to its industry's average P/CF of 10.12. Over the past year, CNDT's P/CF has been as high as 4.26 and as low as 0.67, with a median of 1.77.

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


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Zacks Investment Research