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

Zacks Equity Research
In the latest trading session, Qualcomm (QCOM) closed at $75.76, marking a +0.12% move from the previous day.

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Triple-S Management (GTS). GTS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.66, while its industry has an average P/E of 14.52. 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 11.82.

Investors will also notice that GTS has a PEG ratio of 1.07. 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 PEG compares to its industry's average PEG of 1.09. GTS's PEG has been as high as 2.12 and as low as -0.96, with a median of 1.18, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.18. This compares to its industry's average P/S of 0.44.

Value investors will likely look at more than just these metrics, but the above data helps show that Triple-S Management is likely undervalued currently. And when considering the strength of its earnings outlook, GTS sticks out at as one of the market's strongest value stocks.

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