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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 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 TDK (TTDKY - Free Report) . TTDKY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 17.83. TTDKY's Forward P/E has been as high as 21.71 and as low as 9.46, with a median of 14.48, all within the past year.
We also note that TTDKY holds a PEG ratio of 0.71. 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. TTDKY's industry has an average PEG of 1.59 right now. Over the last 12 months, TTDKY's PEG has been as high as 1.27 and as low as 0.50, with a median of 0.79.
Investors should also recognize that TTDKY has a P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TTDKY's current P/B looks attractive when compared to its industry's average P/B of 3.48. TTDKY's P/B has been as high as 2.14 and as low as 1.25, with a median of 1.59, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TTDKY has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.42.
Finally, investors should note that TTDKY has a P/CF ratio of 5.59. 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 14.79. Over the past year, TTDKY's P/CF has been as high as 9.90 and as low as 4.85, with a median of 6.55.
These are only a few of the key metrics included in TDK's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TTDKY looks like an impressive value stock at the moment.
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Is TDK (TTDKY) 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 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 TDK (TTDKY - Free Report) . TTDKY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 17.83. TTDKY's Forward P/E has been as high as 21.71 and as low as 9.46, with a median of 14.48, all within the past year.
We also note that TTDKY holds a PEG ratio of 0.71. 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. TTDKY's industry has an average PEG of 1.59 right now. Over the last 12 months, TTDKY's PEG has been as high as 1.27 and as low as 0.50, with a median of 0.79.
Investors should also recognize that TTDKY has a P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TTDKY's current P/B looks attractive when compared to its industry's average P/B of 3.48. TTDKY's P/B has been as high as 2.14 and as low as 1.25, with a median of 1.59, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TTDKY has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.42.
Finally, investors should note that TTDKY has a P/CF ratio of 5.59. 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 14.79. Over the past year, TTDKY's P/CF has been as high as 9.90 and as low as 4.85, with a median of 6.55.
These are only a few of the key metrics included in TDK's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TTDKY looks like an impressive value stock at the moment.