Should Value Investors Buy OSI Systems (OSIS) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is OSI Systems (OSIS). OSIS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.42. This compares to its industry's average Forward P/E of 20.09. Over the past year, OSIS's Forward P/E has been as high as 19.33 and as low as 12.04, with a median of 14.85.
We also note that OSIS holds a PEG ratio of 1.22. 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. OSIS's PEG compares to its industry's average PEG of 2.52. Over the past 52 weeks, OSIS's PEG has been as high as 1.76 and as low as 1.09, with a median of 1.35.
Investors should also recognize that OSIS has a P/B ratio of 2.54. 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 4.15. Over the past 12 months, OSIS's P/B has been as high as 3.17 and as low as 2.06, with a median of 2.62.
Finally, investors should note that OSIS has a P/CF ratio of 14.12. 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. OSIS's P/CF compares to its industry's average P/CF of 21.96. OSIS's P/CF has been as high as 18.07 and as low as 9.10, with a median of 14.64, all within the past year.
If you're looking for another solid Electronics - Miscellaneous Components value stock, take a look at TTM Technologies (TTMI). TTMI is a # 1 (Strong Buy) stock with a Value score of A.
TTM Technologies also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 4.15. Over the past year, its P/B ratio has been as high as 1.15, as low as 0.77, with a median of 0.92.
These are only a few of the key metrics included in OSI Systems and TTM Technologies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OSIS and TTMI look like an impressive value stock at the moment.
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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report
