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Should Value Investors Buy Orange (ORAN) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Orange (ORAN - Free Report) . ORAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.71 right now. For comparison, its industry sports an average P/E of 10. Over the past 52 weeks, ORAN's Forward P/E has been as high as 10.22 and as low as 7.49, with a median of 8.56.

Investors should also note that ORAN holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ORAN's PEG compares to its industry's average PEG of 0.76. Within the past year, ORAN's PEG has been as high as 0.78 and as low as 0.48, with a median of 0.54.

Another notable valuation metric for ORAN is its P/B ratio of 0.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.96. Within the past 52 weeks, ORAN's P/B has been as high as 0.88 and as low as 0.69, with a median of 0.81.

These are only a few of the key metrics included in Orange'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, ORAN looks like an impressive value stock at the moment.


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