We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Travelzoo (TZOO - Free Report) . TZOO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.27 right now. For comparison, its industry sports an average P/E of 23.46. Over the last 12 months, TZOO's Forward P/E has been as high as 11.91 and as low as 5.37, with a median of 8.50.
Finally, our model also underscores that TZOO has a P/CF ratio of 9.84. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.43. Over the past year, TZOO's P/CF has been as high as 11.87 and as low as 5.77, with a median of 8.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Travelzoo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TZOO feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Travelzoo (TZOO) Stock Undervalued Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Travelzoo (TZOO - Free Report) . TZOO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.27 right now. For comparison, its industry sports an average P/E of 23.46. Over the last 12 months, TZOO's Forward P/E has been as high as 11.91 and as low as 5.37, with a median of 8.50.
Finally, our model also underscores that TZOO has a P/CF ratio of 9.84. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.43. Over the past year, TZOO's P/CF has been as high as 11.87 and as low as 5.77, with a median of 8.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Travelzoo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TZOO feels like a great value stock at the moment.