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Is Ituran (ITRN) a Great Value Stock Right Now?

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Zacks Equity Research
·2 min read
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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, 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.

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.

Ituran (ITRN) is a stock many investors are watching right now. ITRN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.96, while its industry has an average P/E of 19.93. ITRN's Forward P/E has been as high as 17.22 and as low as 7.55, with a median of 11.40, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ITRN has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.77.

These are only a few of the key metrics included in Ituran'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, ITRN looks like an impressive value stock at the moment.


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Zacks Investment Research