Is Synaptics (SYNA) Stock Undervalued Right Now?
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.
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.
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.
One company to watch right now is Synaptics (SYNA). SYNA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 9.07 right now. For comparison, its industry sports an average P/E of 10.76. 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 notable valuation metric for SYNA is its P/B ratio of 2.05. The P/B ratio pits a stock's market value against 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 5.19. 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 use the P/S ratio. The P/S ratio is is calculated as price divided by 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. SYNA has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.99.
Finally, investors will want to recognize that SYNA has a P/CF ratio of 10.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.62. SYNA's P/CF has been as high as 105.13 and as low as 9.06, with a median of 51.90, all within the past year.
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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