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Is Information Services Group (III) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

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 Information Services Group (III - Free Report) . III is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.86. This compares to its industry's average Forward P/E of 26.08. III's Forward P/E has been as high as 14.51 and as low as 6.33, with a median of 10.82, all within the past year.

Investors should also note that III holds a PEG ratio of 0.99. 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. III's PEG compares to its industry's average PEG of 2.43. Over the past 52 weeks, III's PEG has been as high as 1.04 and as low as 0.45, with a median of 0.77.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. III has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.59.

Value investors will likely look at more than just these metrics, but the above data helps show that Information Services Group is likely undervalued currently. And when considering the strength of its earnings outlook, III sticks out at as one of the market's strongest value stocks.


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