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Is Lenovo Group Ltd. (LNVGY) a Great Value Stock Right Now?

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·3 min read
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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Lenovo Group Ltd. (LNVGY) is a stock many investors are watching right now. LNVGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.25, while its industry has an average P/E of 23.12. Over the past 52 weeks, LNVGY's Forward P/E has been as high as 13.60 and as low as 7.07, with a median of 8.53.

We also note that LNVGY holds a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LNVGY's PEG compares to its industry's average PEG of 1.89. LNVGY's PEG has been as high as 1.23 and as low as 0.39, with a median of 0.57, all within the past year.

Finally, investors should note that LNVGY has a P/CF ratio of 7.08. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.33. LNVGY's P/CF has been as high as 9.42 and as low as 4.02, with a median of 5.20, all within the past year.

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


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