Why Universal Technical Institute (UTI) is a Top Value Stock for the Long-Term

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Universal Technical Institute (UTI)

Universal Technical Institute, Inc. (UTI) is a leading provider of post-secondary education in the United States offering degree, diploma and certificate programs in the fields of professional automotive, diesel, collision repair, motorcycle and marine.

UTI is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 21.2X for the current fiscal year compared to the Schools industry's P/E of 19X. Additionally, UTI has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 8.7X. Value investors should also note UTI's Price/Sales ratio of 0.8X.

A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for UTI, while the Zacks Consensus Estimate has increased $0.09 to $0.70 per share. UTI also holds an average earnings surprise of 126%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding UTI to their portfolios.

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