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Is TTM Technologies (TTMI) a Great Value Stock Right Now?

Zacks Equity Research
Steel Dynamics (STLD) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.17, while its industry has an average P/E of 16.44. Over the past 52 weeks, TTMI's Forward P/E has been as high as 10.55 and as low as 7.17, with a median of 9.33.

We should also highlight that TTMI has a P/B ratio of 1.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.81. Over the past 12 months, TTMI's P/B has been as high as 1.90 and as low as 1.33, with a median of 1.65.

Finally, investors should note that TTMI has a P/CF ratio of 5.31. 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. TTMI's current P/CF looks attractive when compared to its industry's average P/CF of 13.56. Over the past 52 weeks, TTMI's P/CF has been as high as 9.01 and as low as 5.16, with a median of 6.79.

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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