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Is Aviat Networks (AVNW) Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Aviat Networks (AVNW - Free Report) is a stock many investors are watching right now. AVNW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.97, while its industry has an average P/E of 13.03. Over the past 52 weeks, AVNW's Forward P/E has been as high as 15.25 and as low as 8.52, with a median of 10.86.

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. AVNW has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.69.

Finally, investors should note that AVNW has a P/CF ratio of 14.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.39. Within the past 12 months, AVNW's P/CF has been as high as 16.62 and as low as 2.74, with a median of 3.51.

If you're looking for another solid Wireless Equipment value stock, take a look at Viasat (VSAT - Free Report) . VSAT is a # 2 (Buy) stock with a Value score of A.

Shares of Viasat are currently trading at a forward earnings multiple of -198.59 and a PEG ratio of 30.05 compared to its industry's P/E and PEG ratios of 13.03 and 2.58, respectively.


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