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Should Value Investors Buy QuoteMedia (QMCI) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 QuoteMedia (QMCI - Free Report) . QMCI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. QMCI has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.53.

Finally, investors should note that QMCI has a P/CF ratio of 5.79. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. QMCI's current P/CF looks attractive when compared to its industry's average P/CF of 19.48. QMCI's P/CF has been as high as 15.33 and as low as 5.78, with a median of 10.16, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that QuoteMedia is likely undervalued currently. And when considering the strength of its earnings outlook, QMCI sticks out at as one of the market's strongest value stocks.


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