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Are Investors Undervaluing Conduent (CNDT) Right Now?

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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.

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 company value investors might notice is Conduent (CNDT). CNDT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.04, while its industry has an average P/E of 26.20. Over the past 52 weeks, CNDT's Forward P/E has been as high as 16.45 and as low as 5.83, with a median of 9.26.

Finally, investors will want to recognize that CNDT has a P/CF ratio of 5.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CNDT's P/CF compares to its industry's average P/CF of 17.68. Within the past 12 months, CNDT's P/CF has been as high as 5.63 and as low as 1.21, with a median of 3.06.

These are only a few of the key metrics included in Conduent'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, CNDT looks like an impressive value stock at the moment.


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