Is Universal Technical Institute (UTI) Stock Undervalued Right Now?
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 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.
Universal Technical Institute (UTI) is a stock many investors are watching right now. UTI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 19.81. This compares to its industry's average Forward P/E of 23.36. Over the last 12 months, UTI's Forward P/E has been as high as 60.56 and as low as 10.57, with a median of 13.65.
We should also highlight that UTI has a P/B ratio of 2.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.87. Within the past 52 weeks, UTI's P/B has been as high as 2.78 and as low as 1.27, with a median of 1.79.
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. UTI has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.37.
These are just a handful of the figures considered in Universal Technical Institute's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UTI is an impressive value stock right now.
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Universal Technical Institute Inc (UTI) : Free Stock Analysis Report
