Should Value Investors Buy IBEX Limited (IBEX) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
IBEX Limited (IBEX) is a stock many investors are watching right now. IBEX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.48, while its industry has an average P/E of 19.65. IBEX's Forward P/E has been as high as 17.93 and as low as 9.17, with a median of 12.42, all within the past year.
Another notable valuation metric for IBEX is its P/B ratio of 3.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.83. Over the past year, IBEX's P/B has been as high as 4.98 and as low as 2.81, with a median of 3.46.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBEX has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.96.
Finally, we should also recognize that IBEX has a P/CF ratio of 6.95. 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. IBEX's P/CF compares to its industry's average P/CF of 16.14. Over the past 52 weeks, IBEX's P/CF has been as high as 10.55 and as low as 4.98, with a median of 7.
Another great Business - Services stock you could consider is Mitie Group (MITFY), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Mitie Group has a P/B ratio of 3.46 while its industry's price-to-book ratio sits at 3.83. For MITFY, this valuation metric has been as high as 3.78, as low as 1.67, with a median of 2.68 over the past year.
These are only a few of the key metrics included in IBEX Limited and Mitie Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IBEX and MITFY look like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IBEX Limited (IBEX) : Free Stock Analysis Report
Mitie Group PLC. (MITFY) : Free Stock Analysis Report
