Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is inTest (INTT). INTT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.98, while its industry has an average P/E of 20.48. INTT's Forward P/E has been as high as 13.01 and as low as 5.71, with a median of 9.23, all within the past year.
INTT is also sporting a PEG ratio of 0.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. INTT's PEG compares to its industry's average PEG of 1.54. INTT's PEG has been as high as 1.30 and as low as 0.57, with a median of 0.92, all within the past year.
We should also highlight that INTT has a P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.96. Within the past 52 weeks, INTT's P/B has been as high as 2.45 and as low as 1.32, with a median of 1.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that inTest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INTT feels like a great value stock at the moment.
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