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Should Value Investors Buy Unisys (UIS) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Unisys (UIS - Free Report) is a stock many investors are watching right now. UIS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.94, which compares to its industry's average of 35.15. UIS's Forward P/E has been as high as 2,430 and as low as -2,360.95, with a median of 19.84, all within the past year.

UIS is also sporting a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UIS's PEG compares to its industry's average PEG of 2.51. Over the past 52 weeks, UIS's PEG has been as high as 162 and as low as -157.40, with a median of 1.32.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Unisys is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UIS feels like a great value stock at the moment.


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