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Are Investors Undervaluing Tecnoglass (TGLS) Right Now?

Zacks Equity Research

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Tecnoglass (TGLS). TGLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.63, while its industry has an average P/E of 18.33. TGLS's Forward P/E has been as high as 14.79 and as low as 7.61, with a median of 10.96, all within the past year.

Finally, investors will want to recognize that TGLS has a P/CF ratio of 9.61. 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. TGLS's P/CF compares to its industry's average P/CF of 13.05. Over the past 52 weeks, TGLS's P/CF has been as high as 10.79 and as low as 7.81, with a median of 9.60.

These are just a handful of the figures considered in Tecnoglass'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 TGLS is an impressive value stock right now.


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