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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Ituran (ITRN - Free Report) . ITRN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.08. This compares to its industry's average Forward P/E of 17.17. Over the past year, ITRN's Forward P/E has been as high as 17.22 and as low as 7.55, with a median of 11.70.
ITRN is also sporting a PEG ratio of 0.92. 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. ITRN's PEG compares to its industry's average PEG of 2.75. Over the last 12 months, ITRN's PEG has been as high as 0.93 and as low as 0.63, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ITRN has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ituran is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ITRN feels like a great value stock at the moment.
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Is Ituran (ITRN) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Ituran (ITRN - Free Report) . ITRN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.08. This compares to its industry's average Forward P/E of 17.17. Over the past year, ITRN's Forward P/E has been as high as 17.22 and as low as 7.55, with a median of 11.70.
ITRN is also sporting a PEG ratio of 0.92. 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. ITRN's PEG compares to its industry's average PEG of 2.75. Over the last 12 months, ITRN's PEG has been as high as 0.93 and as low as 0.63, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ITRN has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ituran is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ITRN feels like a great value stock at the moment.