Are Investors Undervaluing Forrester Research (FORR) 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.
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.
Forrester Research (FORR) is a stock many investors are watching right now. FORR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors will also notice that FORR has a PEG ratio of 0.88. 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. FORR's PEG compares to its industry's average PEG of 1.08. Over the last 12 months, FORR's PEG has been as high as 2.01 and as low as 0.88, with a median of 1.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FORR has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.66.
Finally, investors should note that FORR has a P/CF ratio of 9.67. 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. FORR's P/CF compares to its industry's average P/CF of 11.16. Over the past year, FORR's P/CF has been as high as 20.19 and as low as 9.67, with a median of 16.11.
Value investors will likely look at more than just these metrics, but the above data helps show that Forrester Research is likely undervalued currently. And when considering the strength of its earnings outlook, FORR sticks out at as one of the market's strongest value stocks.
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