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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Ceragon Networks (CRNT). CRNT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that CRNT has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRNT's industry has an average PEG of 1.06 right now. Over the last 12 months, CRNT's PEG has been as high as 1.64 and as low as 0.73, with a median of 1.10.
Investors should also recognize that CRNT has a P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.04. Over the past 12 months, CRNT's P/B has been as high as 2.50 and as low as 1.25, with a median of 1.85.
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. CRNT has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.21.
Finally, we should also recognize that CRNT has a P/CF ratio of 7.81. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.94. CRNT's P/CF has been as high as 14.14 and as low as 6.88, with a median of 10.27, all within the past year.
These are just a handful of the figures considered in Ceragon Networks's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRNT is an impressive value stock right now.
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Ceragon Networks Ltd. (CRNT) : Free Stock Analysis Report
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