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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Flex (FLEX) is a stock many investors are watching right now. FLEX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.74. This compares to its industry's average Forward P/E of 19.49. FLEX's Forward P/E has been as high as 14.34 and as low as 8.31, with a median of 11.32, all within the past year.
Investors should also note that FLEX holds a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FLEX's industry has an average PEG of 1.64 right now. Over the past 52 weeks, FLEX's PEG has been as high as 1.36 and as low as 0.80, with a median of 0.96.
Another notable valuation metric for FLEX is its P/B ratio of 2.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FLEX's current P/B looks attractive when compared to its industry's average P/B of 6.78. Within the past 52 weeks, FLEX's P/B has been as high as 2.93 and as low as 1.67, with a median of 2.55.
Finally, investors should note that FLEX has a P/CF ratio of 7.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.24. Over the past 52 weeks, FLEX's P/CF has been as high as 8.66 and as low as 5.29, with a median of 7.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Flex is likely undervalued currently. And when considering the strength of its earnings outlook, FLEX sticks out at as one of the market's strongest value stocks.
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