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Is Synaptics (SYNA) a Great Value Stock Right Now?

Zacks Equity Research
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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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Synaptics (SYNA). SYNA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.07 right now. For comparison, its industry sports an average P/E of 11.28. Over the past year, SYNA's Forward P/E has been as high as 12.62 and as low as 7.22, with a median of 9.29.

Another valuation metric that we should highlight is SYNA's P/B ratio of 2.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.31. Over the past year, SYNA's P/B has been as high as 2.71 and as low as 1.66, with a median of 2.14.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SYNA has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.85.

Finally, we should also recognize that SYNA has a P/CF ratio of 10.78. 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. SYNA's P/CF compares to its industry's average P/CF of 15.80. Over the past 52 weeks, SYNA's P/CF has been as high as 105.13 and as low as 9.06, with a median of 51.90.

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


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