Are Investors Undervaluing International Game Technology (IGT) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 International Game Technology (IGT). IGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 19.99, while its industry has an average P/E of 36.25. Over the last 12 months, IGT's Forward P/E has been as high as 23.03 and as low as 10.76, with a median of 16.22.
We should also highlight that IGT has a P/B ratio of 3.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IGT's current P/B looks attractive when compared to its industry's average P/B of 9.29. Over the past 12 months, IGT's P/B has been as high as 3.54 and as low as 1.55, with a median of 2.62.
Investors could also keep in mind MGM Resorts International (MGM), an Gaming stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
MGM Resorts International is currently trading with a Forward P/E ratio of 17.67 while its PEG ratio sits at 8.41. Both of the company's metrics compare favorably to its industry's average P/E of 36.25 and average PEG ratio of 4.96.
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International Game Technology (IGT) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
