Are Investors Undervaluing Computer Task Group (CTG) Right Now?
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, 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Computer Task Group (CTG). CTG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.88, while its industry has an average P/E of 20.36. CTG's Forward P/E has been as high as 16.55 and as low as 9.33, with a median of 11.75, all within the past year.
Investors should also note that CTG holds a PEG ratio of 0.79. 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. CTG's PEG compares to its industry's average PEG of 1.94. Within the past year, CTG's PEG has been as high as 1.10 and as low as 0.62, with a median of 0.78.
These are only a few of the key metrics included in Computer Task Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CTG looks like an impressive value stock at the moment.
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