U.S. Markets closed

Is Turtle Beach (HEAR) a Great Value Stock Right Now?

Zacks Equity Research

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Turtle Beach (HEAR) is a stock many investors are watching right now. HEAR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.85, while its industry has an average P/E of 22.40. Over the past 52 weeks, HEAR's Forward P/E has been as high as 13.63 and as low as 5.40, with a median of 9.06.

HEAR is also sporting a PEG ratio of 0.93. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HEAR's industry currently sports an average PEG of 2.04. HEAR's PEG has been as high as 1.51 and as low as 0.36, with a median of 0.93, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HEAR has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.34.

Finally, we should also recognize that HEAR has a P/CF ratio of 3.93. 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. HEAR's current P/CF looks attractive when compared to its industry's average P/CF of 8.80. HEAR's P/CF has been as high as 10.58 and as low as 2.79, with a median of 4.14, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Turtle Beach is likely undervalued currently. And when considering the strength of its earnings outlook, HEAR sticks out at as one of the market's strongest value stocks.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research