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Is Integer (ITGR) a Great Value Stock Right Now?

Zacks Equity Research

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.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Integer (ITGR) is a stock many investors are watching right now. ITGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.95, which compares to its industry's average of 33. Over the past 52 weeks, ITGR's Forward P/E has been as high as 21.71 and as low as 14.90, with a median of 17.60.

We should also highlight that ITGR has a P/B ratio of 2.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4. Over the past year, ITGR's P/B has been as high as 2.81 and as low as 2.05, with a median of 2.34.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ITGR has a P/S ratio of 1.97. This compares to its industry's average P/S of 3.4.

Finally, investors will want to recognize that ITGR has a P/CF ratio of 12.41. 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 21.21. Over the past year, ITGR's P/CF has been as high as 13.16 and as low as 6.59, with a median of 8.29.

Value investors will likely look at more than just these metrics, but the above data helps show that Integer is likely undervalued currently. And when considering the strength of its earnings outlook, ITGR sticks out at as one of the market's strongest value stocks.


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