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Should Value Investors Buy Piper Sandler Companies (PIPR) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Piper Sandler Companies (PIPR - Free Report) . PIPR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.25, while its industry has an average P/E of 12.38. Over the past 52 weeks, PIPR's Forward P/E has been as high as 15.01 and as low as 9.25, with a median of 12.27.

We should also highlight that PIPR has a P/B ratio of 2.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PIPR's current P/B looks attractive when compared to its industry's average P/B of 2.58. Over the past 12 months, PIPR's P/B has been as high as 2.49 and as low as 1.35, with a median of 2.02.

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. PIPR has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.97.

Finally, our model also underscores that PIPR has a P/CF ratio of 12.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.47. Within the past 12 months, PIPR's P/CF has been as high as 19.61 and as low as 8.25, with a median of 13.28.

These are just a handful of the figures considered in Piper Sandler Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PIPR is an impressive value stock right now.


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