Are Investors Undervaluing Orange (ORAN) 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 company to watch right now is Orange (ORAN). ORAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that ORAN holds a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ORAN's PEG compares to its industry's average PEG of 1.06. Within the past year, ORAN's PEG has been as high as 1.04 and as low as 0.45, with a median of 0.58.
We should also highlight that ORAN has a P/B ratio of 1.01. The P/B is a method of comparing a stock's market value to 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. Within the past 52 weeks, ORAN's P/B has been as high as 1.17 and as low as 1.01, with a median of 1.08.
These are only a few of the key metrics included in Orange'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, ORAN looks like an impressive value stock at the moment.
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