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Are Investors Undervaluing TTM Technologies (TTMI) Right Now?

·2 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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

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.

One stock to keep an eye on is TTM Technologies (TTMI). TTMI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.91, which compares to its industry's average of 21.05. Over the past year, TTMI's Forward P/E has been as high as 12.60 and as low as 8.09, with a median of 9.74.

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. TTMI has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.4.

Finally, we should also recognize that TTMI has a P/CF ratio of 8.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.30. Over the past 52 weeks, TTMI's P/CF has been as high as 9.08 and as low as 5.68, with a median of 7.05.

These figures are just a handful of the metrics value investors tend to look at, but they help show that TTM Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TTMI feels like a great value stock at the moment.


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