Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Singapore-based Flex Ltd (formerly known as Flextronics International Ltd) has a diverse workforce across 30 countries and offers advanced manufacturing solutions and supply chain services throughout the product lifecycle development, including fulfillment, after-market support, and circular economy solutions.
FLEX sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Electronics - Miscellaneous Products industry's P/E of 18.4X, shares of Flex are trading at a forward P/E of 9X. FLEX also has a PEG Ratio of 0.7, a Price/Cash Flow ratio of 6.8X, and a Price/Sales ratio of 0.3X.
Many value investors pay close attention to a company's earnings as well. For FLEX, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.30 per share for 2023. Per share FLEX boasts an average earnings surprise of 13.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding FLEX to their portfolios.
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