Should Value Investors Buy Comtech Telecommunications (CMTL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Comtech Telecommunications (CMTL) is a stock many investors are watching right now. CMTL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.62, while its industry has an average P/E of 17.40. Over the past 52 weeks, CMTL's Forward P/E has been as high as 18.16 and as low as -227.77, with a median of 11.32.
Investors will also notice that CMTL has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMTL's PEG compares to its industry's average PEG of 3.20. Within the past year, CMTL's PEG has been as high as 2.27 and as low as -7.74, with a median of 1.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CMTL has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.08.
Finally, investors will want to recognize that CMTL has a P/CF ratio of 17.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.87. Over the past 52 weeks, CMTL's P/CF has been as high as 143.37 and as low as 11.72, with a median of 17.05.
Another great Wireless Equipment stock you could consider is Viasat (VSAT), which is a # 2 (Buy) stock with a Value Score of A.
Viasat is trading at a forward earnings multiple of 17.55 at the moment, with a PEG ratio of 1.11. This compares to its industry's average P/E of 17.40 and average PEG ratio of 3.20.
VSAT's price-to-earnings ratio has been as high as 40.45 and as low as -44.75, with a median of -16.79, while its PEG ratio has been as high as 13.42 and as low as 1.10, with a median of 8.98, all within the past year.
Viasat sports a P/B ratio of 0.48 as well; this compares to its industry's price-to-book ratio of 5.28. In the past 52 weeks, VSAT's P/B has been as high as 1.09, as low as 0.23, with a median of 0.73.
These are just a handful of the figures considered in Comtech Telecommunications and Viasat'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 CMTL and VSAT is an impressive value stock right now.
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Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report
Viasat Inc. (VSAT) : Free Stock Analysis Report
