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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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is TOPCON (TOPCF - Free Report) . TOPCF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for TOPCF is its P/B ratio of 1.93. The P/B ratio is used to compare a stock's market value with 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 5.67. Over the past 12 months, TOPCF's P/B has been as high as 3.05 and as low as 1.68, with a median of 2.40.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TOPCF has a P/S ratio of 0.86. This compares to its industry's average P/S of 2.35.
Investors could also keep in mind Vontier (VNT - Free Report) , an Technology Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Vontier is trading at a forward earnings multiple of 8.32 at the moment, with a PEG ratio of 1.68. This compares to its industry's average P/E of 58.05 and average PEG ratio of 4.27.
VNT's Forward P/E has been as high as 14 and as low as 7.10, with a median of 11.39. During the same time period, its PEG ratio has been as high as 4.46, as low as 1.14, with a median of 1.64.
Vontier sports a P/B ratio of 7.55 as well; this compares to its industry's price-to-book ratio of 5.67. In the past 52 weeks, VNT's P/B has been as high as 22.16, as low as 6.54, with a median of 11.93.
Value investors will likely look at more than just these metrics, but the above data helps show that TOPCON and Vontier are likely undervalued currently. And when considering the strength of its earnings outlook, TOPCF and VNT sticks out as one of the market's strongest value stocks.
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Is TOPCON (TOPCF) a Great Value Stock 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is TOPCON (TOPCF - Free Report) . TOPCF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for TOPCF is its P/B ratio of 1.93. The P/B ratio is used to compare a stock's market value with 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 5.67. Over the past 12 months, TOPCF's P/B has been as high as 3.05 and as low as 1.68, with a median of 2.40.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TOPCF has a P/S ratio of 0.86. This compares to its industry's average P/S of 2.35.
Investors could also keep in mind Vontier (VNT - Free Report) , an Technology Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Vontier is trading at a forward earnings multiple of 8.32 at the moment, with a PEG ratio of 1.68. This compares to its industry's average P/E of 58.05 and average PEG ratio of 4.27.
VNT's Forward P/E has been as high as 14 and as low as 7.10, with a median of 11.39. During the same time period, its PEG ratio has been as high as 4.46, as low as 1.14, with a median of 1.64.
Vontier sports a P/B ratio of 7.55 as well; this compares to its industry's price-to-book ratio of 5.67. In the past 52 weeks, VNT's P/B has been as high as 22.16, as low as 6.54, with a median of 11.93.
Value investors will likely look at more than just these metrics, but the above data helps show that TOPCON and Vontier are likely undervalued currently. And when considering the strength of its earnings outlook, TOPCF and VNT sticks out as one of the market's strongest value stocks.