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Are Investors Undervaluing PC Connection (CNXN) Right Now?
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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.
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.
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 company value investors might notice is PC Connection (CNXN - Free Report) . CNXN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 18.15. This compares to its industry's average Forward P/E of 18.27. CNXN's Forward P/E has been as high as 21.07 and as low as 15.13, with a median of 18.13, all within the past year.
Investors should also note that CNXN holds a PEG ratio of 1.82. 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. CNXN's industry currently sports an average PEG of 1.83. Over the last 12 months, CNXN's PEG has been as high as 2.11 and as low as 1.52, with a median of 1.84.
Another notable valuation metric for CNXN is its P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.07. CNXN's P/B has been as high as 2.26 and as low as 1.68, with a median of 2, over the past year.
Finally, our model also underscores that CNXN has a P/CF ratio of 19.17. 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 19.31. Over the past 52 weeks, CNXN's P/CF has been as high as 21.04 and as low as 15.24, with a median of 18.29.
Value investors will likely look at more than just these metrics, but the above data helps show that PC Connection is likely undervalued currently. And when considering the strength of its earnings outlook, CNXN sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing PC Connection (CNXN) 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.
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.
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 company value investors might notice is PC Connection (CNXN - Free Report) . CNXN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 18.15. This compares to its industry's average Forward P/E of 18.27. CNXN's Forward P/E has been as high as 21.07 and as low as 15.13, with a median of 18.13, all within the past year.
Investors should also note that CNXN holds a PEG ratio of 1.82. 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. CNXN's industry currently sports an average PEG of 1.83. Over the last 12 months, CNXN's PEG has been as high as 2.11 and as low as 1.52, with a median of 1.84.
Another notable valuation metric for CNXN is its P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.07. CNXN's P/B has been as high as 2.26 and as low as 1.68, with a median of 2, over the past year.
Finally, our model also underscores that CNXN has a P/CF ratio of 19.17. 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 19.31. Over the past 52 weeks, CNXN's P/CF has been as high as 21.04 and as low as 15.24, with a median of 18.29.
Value investors will likely look at more than just these metrics, but the above data helps show that PC Connection is likely undervalued currently. And when considering the strength of its earnings outlook, CNXN sticks out at as one of the market's strongest value stocks.