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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Yelp (YELP - Free Report) . YELP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 17.59 right now. For comparison, its industry sports an average P/E of 20.99. Over the past year, YELP's Forward P/E has been as high as 35.07 and as low as 17.59, with a median of 24.01.
Investors should also recognize that YELP has a P/B ratio of 3.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. YELP's current P/B looks attractive when compared to its industry's average P/B of 6.73. YELP's P/B has been as high as 4.48 and as low as 3.05, with a median of 3.80, over the past year.
Finally, investors should note that YELP has a P/CF ratio of 10.61. 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 21.28. YELP's P/CF has been as high as 25.62 and as low as 10.49, with a median of 14.48, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Yelp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YELP feels like a great value stock at the moment.
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Is Yelp (YELP) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Yelp (YELP - Free Report) . YELP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 17.59 right now. For comparison, its industry sports an average P/E of 20.99. Over the past year, YELP's Forward P/E has been as high as 35.07 and as low as 17.59, with a median of 24.01.
Investors should also recognize that YELP has a P/B ratio of 3.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. YELP's current P/B looks attractive when compared to its industry's average P/B of 6.73. YELP's P/B has been as high as 4.48 and as low as 3.05, with a median of 3.80, over the past year.
Finally, investors should note that YELP has a P/CF ratio of 10.61. 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 21.28. YELP's P/CF has been as high as 25.62 and as low as 10.49, with a median of 14.48, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Yelp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YELP feels like a great value stock at the moment.