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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is TTM Technologies (TTMI). TTMI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.69, while its industry has an average P/E of 21.23. TTMI's Forward P/E has been as high as 13.14 and as low as 7.53, with a median of 10.20, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. TTMI has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.39.
Finally, investors should note that TTMI has a P/CF ratio of 6.45. 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 22.75. TTMI's P/CF has been as high as 7.82 and as low as 5.09, with a median of 6.68, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that TTM Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, TTMI sticks out at as one of the market's strongest value stocks.
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