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Should Value Investors Buy Ceragon Networks (CRNT) 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.

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.

Ceragon Networks (CRNT - Free Report) is a stock many investors are watching right now. CRNT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.22. This compares to its industry's average Forward P/E of 10.26. Over the past 52 weeks, CRNT's Forward P/E has been as high as 20.24 and as low as 8.92, with a median of 14.06.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRNT has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.38.

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


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