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Is Ultra Clean Holdings (UCTT) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ultra Clean Holdings (UCTT - Free Report) is a stock many investors are watching right now. UCTT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.99, which compares to its industry's average of 20.31. Over the last 12 months, UCTT's Forward P/E has been as high as 20.15 and as low as 7.77, with a median of 12.39.
We also note that UCTT holds a PEG ratio of 1.62. 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. UCTT's industry has an average PEG of 2.54 right now. Over the past 52 weeks, UCTT's PEG has been as high as 2.52 and as low as 0.97, with a median of 1.55.
Another valuation metric that we should highlight is UCTT's P/B ratio of 4.11. 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. This stock's P/B looks attractive against its industry's average P/B of 5.19. UCTT's P/B has been as high as 4.94 and as low as 1.59, with a median of 3.14, over the past year.
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. UCTT has a P/S ratio of 1.22. This compares to its industry's average P/S of 2.53.
Finally, we should also recognize that UCTT has a P/CF ratio of 16.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.76. Within the past 12 months, UCTT's P/CF has been as high as 19.34 and as low as 9.62, with a median of 15.10.
These are just a handful of the figures considered in Ultra Clean Holdings'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 UCTT is an impressive value stock right now.
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Is Ultra Clean Holdings (UCTT) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ultra Clean Holdings (UCTT - Free Report) is a stock many investors are watching right now. UCTT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.99, which compares to its industry's average of 20.31. Over the last 12 months, UCTT's Forward P/E has been as high as 20.15 and as low as 7.77, with a median of 12.39.
We also note that UCTT holds a PEG ratio of 1.62. 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. UCTT's industry has an average PEG of 2.54 right now. Over the past 52 weeks, UCTT's PEG has been as high as 2.52 and as low as 0.97, with a median of 1.55.
Another valuation metric that we should highlight is UCTT's P/B ratio of 4.11. 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. This stock's P/B looks attractive against its industry's average P/B of 5.19. UCTT's P/B has been as high as 4.94 and as low as 1.59, with a median of 3.14, over the past year.
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. UCTT has a P/S ratio of 1.22. This compares to its industry's average P/S of 2.53.
Finally, we should also recognize that UCTT has a P/CF ratio of 16.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.76. Within the past 12 months, UCTT's P/CF has been as high as 19.34 and as low as 9.62, with a median of 15.10.
These are just a handful of the figures considered in Ultra Clean Holdings'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 UCTT is an impressive value stock right now.