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Should Value Investors Buy Tactile Systems Technology (TCMD) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.06. This compares to its industry's average Forward P/E of 31.67. TCMD's Forward P/E has been as high as 81.99 and as low as 13.86, with a median of 28.16, all within the past year.
Investors should also recognize that TCMD has a P/B ratio of 1.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TCMD's current P/B looks attractive when compared to its industry's average P/B of 4.23. TCMD's P/B has been as high as 3.26 and as low as 1.28, with a median of 1.74, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TCMD has a P/S ratio of 1.11. This compares to its industry's average P/S of 2.83.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 7.86. 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 25.19. Over the past year, TCMD's P/CF has been as high as 75.68 and as low as 7.55, with a median of 9.84.
These are only a few of the key metrics included in Tactile Systems Technology'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, TCMD looks like an impressive value stock at the moment.
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Should Value Investors Buy Tactile Systems Technology (TCMD) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tactile Systems Technology (TCMD - Free Report) . TCMD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.06. This compares to its industry's average Forward P/E of 31.67. TCMD's Forward P/E has been as high as 81.99 and as low as 13.86, with a median of 28.16, all within the past year.
Investors should also recognize that TCMD has a P/B ratio of 1.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TCMD's current P/B looks attractive when compared to its industry's average P/B of 4.23. TCMD's P/B has been as high as 3.26 and as low as 1.28, with a median of 1.74, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TCMD has a P/S ratio of 1.11. This compares to its industry's average P/S of 2.83.
Finally, investors will want to recognize that TCMD has a P/CF ratio of 7.86. 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 25.19. Over the past year, TCMD's P/CF has been as high as 75.68 and as low as 7.55, with a median of 9.84.
These are only a few of the key metrics included in Tactile Systems Technology'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, TCMD looks like an impressive value stock at the moment.