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Should Value Investors Buy Triple-S Management (GTS) Stock?

Zacks Equity Research
Zimmer (ZBH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company to watch right now is Triple-S Management (GTS). GTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.46. This compares to its industry's average Forward P/E of 16.02. Over the last 12 months, GTS's Forward P/E has been as high as 21.20 and as low as -9.61, with a median of 13.54.

Investors should also note that GTS holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GTS's industry has an average PEG of 1.18 right now. Over the last 12 months, GTS's PEG has been as high as 2.12 and as low as -0.96, with a median of 1.36.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GTS has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.46.

These are only a few of the key metrics included in Triple-S Management's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GTS looks like an impressive value stock at the moment.


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