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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Photronics (PLAB). PLAB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.27, while its industry has an average P/E of 16.60. Over the past year, PLAB's Forward P/E has been as high as 21.22 and as low as 12.80, with a median of 15.45.
We should also highlight that PLAB has a P/B ratio of 0.94. 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 stock's P/B looks attractive against its industry's average P/B of 1.18. Over the past year, PLAB's P/B has been as high as 1.20 and as low as 0.59, with a median of 0.74.
Finally, investors will want to recognize that PLAB has a P/CF ratio of 7.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PLAB's current P/CF looks attractive when compared to its industry's average P/CF of 9.32. PLAB's P/CF has been as high as 9.58 and as low as 4.78, with a median of 5.86, all within the past year.
These are just a handful of the figures considered in Photronics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PLAB is an impressive value stock right now.
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Photronics, Inc. (PLAB) : Free Stock Analysis Report
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