Should Value Investors Buy Aviat Networks (AVNW) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Aviat Networks (AVNW) is a stock many investors are watching right now. AVNW 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 7.86, while its industry has an average P/E of 17.03. Over the last 12 months, AVNW's Forward P/E has been as high as 11.66 and as low as 6.79, with a median of 8.90.
Finally, investors will want to recognize that AVNW has a P/CF ratio of 15.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AVNW's P/CF compares to its industry's average P/CF of 21.66. AVNW's P/CF has been as high as 24.49 and as low as 12.43, with a median of 20.48, all within the past year.
Comtech Telecommunications (CMTL) may be another strong Wireless Equipment stock to add to your shortlist. CMTL is a # 2 (Buy) stock with a Value grade of A.
Comtech Telecommunications is currently trading with a Forward P/E ratio of 8.82 while its PEG ratio sits at 1.10. Both of the company's metrics compare favorably to its industry's average P/E of 17.03 and average PEG ratio of 3.15.
CMTL's Forward P/E has been as high as 18.16 and as low as -227.77, with a median of 11.32. During the same time period, its PEG ratio has been as high as 2.27, as low as -7.74, with a median of 1.44.
Comtech Telecommunications also has a P/B ratio of 0.79 compared to its industry's price-to-book ratio of 5.09. Over the past year, its P/B ratio has been as high as 1.04, as low as 0.51, with a median of 0.71.
These are just a handful of the figures considered in Aviat Networks and Comtech Telecommunications'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 AVNW and CMTL is an impressive value stock right now.
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Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report
Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report
