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Are Investors Undervaluing Amdocs (DOX) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Amdocs (DOX - Free Report) . DOX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.76, while its industry has an average P/E of 31.03. DOX's Forward P/E has been as high as 15.69 and as low as 13, with a median of 14.43, all within the past year.
Investors will also notice that DOX has a PEG ratio of 1.20. 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. DOX's industry currently sports an average PEG of 2.54. Within the past year, DOX's PEG has been as high as 1.56 and as low as 1.15, with a median of 1.42.
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. DOX has a P/S ratio of 2.38. This compares to its industry's average P/S of 2.56.
Finally, investors will want to recognize that DOX has a P/CF ratio of 13.06. 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 stock's P/CF looks attractive against its industry's average P/CF of 33.78. Within the past 12 months, DOX's P/CF has been as high as 14.44 and as low as 9.65, with a median of 13.23.
Another great Computers - IT Services stock you could consider is Science Applications International (SAIC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Science Applications International holds a P/B ratio of 3.57 and its industry's price-to-book ratio is 15.06. SAIC's P/B has been as high as 3.74, as low as 2.72, with a median of 3.07 over the past 12 months.
These are just a handful of the figures considered in Amdocs and Science Applications International'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 DOX and SAIC is an impressive value stock right now.
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Are Investors Undervaluing Amdocs (DOX) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Amdocs (DOX - Free Report) . DOX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.76, while its industry has an average P/E of 31.03. DOX's Forward P/E has been as high as 15.69 and as low as 13, with a median of 14.43, all within the past year.
Investors will also notice that DOX has a PEG ratio of 1.20. 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. DOX's industry currently sports an average PEG of 2.54. Within the past year, DOX's PEG has been as high as 1.56 and as low as 1.15, with a median of 1.42.
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. DOX has a P/S ratio of 2.38. This compares to its industry's average P/S of 2.56.
Finally, investors will want to recognize that DOX has a P/CF ratio of 13.06. 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 stock's P/CF looks attractive against its industry's average P/CF of 33.78. Within the past 12 months, DOX's P/CF has been as high as 14.44 and as low as 9.65, with a median of 13.23.
Another great Computers - IT Services stock you could consider is Science Applications International (SAIC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Science Applications International holds a P/B ratio of 3.57 and its industry's price-to-book ratio is 15.06. SAIC's P/B has been as high as 3.74, as low as 2.72, with a median of 3.07 over the past 12 months.
These are just a handful of the figures considered in Amdocs and Science Applications International'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 DOX and SAIC is an impressive value stock right now.