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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Leidos (LDOS - Free Report) . LDOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.95, which compares to its industry's average of 17.25. Over the past year, LDOS's Forward P/E has been as high as 22.35 and as low as 12.18, with a median of 16.75.
We also note that LDOS holds a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LDOS's industry currently sports an average PEG of 3.27. Over the last 12 months, LDOS's PEG has been as high as 2.98 and as low as 1.21, with a median of 1.67.
Finally, investors should note that LDOS has a P/CF ratio of 14.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LDOS's P/CF compares to its industry's average P/CF of 20.36. LDOS's P/CF has been as high as 19.46 and as low as 11.18, with a median of 15.37, all within the past year.
These are only a few of the key metrics included in Leidos'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, LDOS looks like an impressive value stock at the moment.
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Should Value Investors Buy Leidos (LDOS) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Leidos (LDOS - Free Report) . LDOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.95, which compares to its industry's average of 17.25. Over the past year, LDOS's Forward P/E has been as high as 22.35 and as low as 12.18, with a median of 16.75.
We also note that LDOS holds a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LDOS's industry currently sports an average PEG of 3.27. Over the last 12 months, LDOS's PEG has been as high as 2.98 and as low as 1.21, with a median of 1.67.
Finally, investors should note that LDOS has a P/CF ratio of 14.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LDOS's P/CF compares to its industry's average P/CF of 20.36. LDOS's P/CF has been as high as 19.46 and as low as 11.18, with a median of 15.37, all within the past year.
These are only a few of the key metrics included in Leidos'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, LDOS looks like an impressive value stock at the moment.