Should Value Investors Buy TTM Technologies (TTMI) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is TTM Technologies (TTMI). TTMI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.69, which compares to its industry's average of 20. Over the past year, TTMI's Forward P/E has been as high as 13.14 and as low as 8.27, with a median of 10.28.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TTMI has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.33.
Finally, our model also underscores that TTMI has a P/CF ratio of 8.74. 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. TTMI's P/CF compares to its industry's average P/CF of 25.02. Within the past 12 months, TTMI's P/CF has been as high as 8.74 and as low as 5.09, with a median of 6.82.
These are only a few of the key metrics included in TTM Technologies'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, TTMI looks like an impressive value stock at the moment.
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TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report
