Should Value Investors Buy Orange (ORAN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Orange (ORAN). ORAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ORAN holds a PEG ratio of 0.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ORAN's industry has an average PEG of 0.67 right now. ORAN's PEG has been as high as 0.70 and as low as 0.51, with a median of 0.58, all within the past year.
We should also highlight that ORAN has a P/B ratio of 0.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.24. Over the past 12 months, ORAN's P/B has been as high as 0.94 and as low as 0.67, with a median of 0.82.
TeliaSonera (TLSNY) may be another strong Wireless Non-US stock to add to your shortlist. TLSNY is a # 2 (Buy) stock with a Value grade of A.
TeliaSonera is currently trading with a Forward P/E ratio of 15.74 while its PEG ratio sits at 0.30. Both of the company's metrics compare favorably to its industry's average P/E of 6.40 and average PEG ratio of 0.67.
TLSNY's price-to-earnings ratio has been as high as 19.44 and as low as 14.40, with a median of 16.49, while its PEG ratio has been as high as 0.89 and as low as 0.26, with a median of 0.35, all within the past year.
Additionally, TeliaSonera has a P/B ratio of 1.59 while its industry's price-to-book ratio sits at 1.24. For TLSNY, this valuation metric has been as high as 1.75, as low as 1.19, with a median of 1.50 over the past year.
These are only a few of the key metrics included in Orange and TeliaSonera strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ORAN and TLSNY look like an impressive value stock at the moment.
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Orange (ORAN) : Free Stock Analysis Report
TeliaSonera AB (TLSNY) : Free Stock Analysis Report
