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Are These Computer and Technology Stocks Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Celestica (CLS - Free Report) is a stock many investors are watching right now. CLS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.71, while its industry has an average P/E of 10.49. Over the last 12 months, CLS's Forward P/E has been as high as 9.44 and as low as 6.49, with a median of 7.52.
Investors should also note that CLS holds a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CLS's industry has an average PEG of 0.81 right now. Over the last 12 months, CLS's PEG has been as high as 2.11 and as low as 0.46, with a median of 0.75.
We should also highlight that CLS has a P/B ratio of 1.07. 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 solid versus its industry's average P/B of 2.59. Over the past 12 months, CLS's P/B has been as high as 1.10 and as low as 0.63, with a median of 0.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CLS has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.39.
If you're looking for another solid Electronics - Manufacturing Services value stock, take a look at Jabil (JBL - Free Report) . JBL is a # 2 (Buy) stock with a Value score of A.
Jabil is currently trading with a Forward P/E ratio of 9 while its PEG ratio sits at 0.75. Both of the company's metrics compare favorably to its industry's average P/E of 10.49 and average PEG ratio of 0.81.
JBL's price-to-earnings ratio has been as high as 11.10 and as low as 7.64, with a median of 9.97, while its PEG ratio has been as high as 0.93 and as low as 0.64, with a median of 0.83, all within the past year.
Furthermore, Jabil holds a P/B ratio of 4.04 and its industry's price-to-book ratio is 2.59. JBL's P/B has been as high as 4.64, as low as 3.42, with a median of 3.98 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Celestica and Jabil are likely undervalued currently. And when considering the strength of its earnings outlook, CLS and JBL sticks out as one of the market's strongest value stocks.
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Are These Computer and Technology Stocks Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Celestica (CLS - Free Report) is a stock many investors are watching right now. CLS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.71, while its industry has an average P/E of 10.49. Over the last 12 months, CLS's Forward P/E has been as high as 9.44 and as low as 6.49, with a median of 7.52.
Investors should also note that CLS holds a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CLS's industry has an average PEG of 0.81 right now. Over the last 12 months, CLS's PEG has been as high as 2.11 and as low as 0.46, with a median of 0.75.
We should also highlight that CLS has a P/B ratio of 1.07. 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 solid versus its industry's average P/B of 2.59. Over the past 12 months, CLS's P/B has been as high as 1.10 and as low as 0.63, with a median of 0.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CLS has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.39.
If you're looking for another solid Electronics - Manufacturing Services value stock, take a look at Jabil (JBL - Free Report) . JBL is a # 2 (Buy) stock with a Value score of A.
Jabil is currently trading with a Forward P/E ratio of 9 while its PEG ratio sits at 0.75. Both of the company's metrics compare favorably to its industry's average P/E of 10.49 and average PEG ratio of 0.81.
JBL's price-to-earnings ratio has been as high as 11.10 and as low as 7.64, with a median of 9.97, while its PEG ratio has been as high as 0.93 and as low as 0.64, with a median of 0.83, all within the past year.
Furthermore, Jabil holds a P/B ratio of 4.04 and its industry's price-to-book ratio is 2.59. JBL's P/B has been as high as 4.64, as low as 3.42, with a median of 3.98 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Celestica and Jabil are likely undervalued currently. And when considering the strength of its earnings outlook, CLS and JBL sticks out as one of the market's strongest value stocks.