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Is YY (YY) a Great Value Stock Right Now?

Zacks Equity Research

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, 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is YY (YY). YY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.42, which compares to its industry's average of 21.26. Over the past year, YY's Forward P/E has been as high as 18.33 and as low as 6.49, with a median of 9.53.

YY is also sporting a PEG ratio of 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. YY's PEG compares to its industry's average PEG of 0.98. YY's PEG has been as high as 1.29 and as low as 0.29, with a median of 0.57, all within the past year.

These are only a few of the key metrics included in YY'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, YY looks like an impressive value stock at the moment.


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Zacks Investment Research