Should Value Investors Buy Greenland Technologies (GTEC) 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.
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.
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.
One company value investors might notice is Greenland Technologies (GTEC). GTEC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GTEC has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.79.
Finally, our model also underscores that GTEC has a P/CF ratio of 5.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.77. Over the past 52 weeks, GTEC's P/CF has been as high as 9.84 and as low as 3.70, with a median of 5.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Greenland Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTEC feels like a great value stock at the moment.
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