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Is Tecnoglass Inc. (TGLS) a Great Stock for Value Investors?
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Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Tecnoglass Inc. (TGLS - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Tecnoglass Inc. has a trailing twelve months PE ratio of 17.9, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 19.9. If we focus on the stock’s long-term PE trend, the current level puts Tecnoglass Inc.’s current PE ratio slightly above its midpoint (which is 16.7) over the past three years.
Further, the stock’s PE also compares favorably with the industry’s trailing twelve months PE ratio, which stands at 25.0. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Tecnoglass Inc. has a forward PE ratio (price relative to this year’s earnings) of 14.5, so it is fair to say that a slightly more value-oriented path may be ahead for Tecnoglass Inc.’s stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Tecnoglass Inc. has a P/S ratio of about 0.9. This is substantially lower than the S&P 500 average, which comes in at 3.5 right now. Also, as we can see in the chart below, this is somewhat below the highs for this stock in particular over the past few years.
If anything, this suggests some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Tecnoglass Inc. currently has a Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This makes TGLS a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Tecnoglass Inc. is just 0.7, a level that is slightly lower than the industry average of 1.3. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Additionally, its P/CF ratio (another great indicator of value) comes in at 10.0, which is marginally better than the industry average of 10.2. Clearly, TGLS is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Tecnoglass Inc. might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of A and a Momentum score of B. This gives TGLS a VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current quarter has seen one estimate go higher in the past sixty days, compared to none lower, while the full year estimate has seen two upward and no downward revisions in the same time period.
This has had a favorable impact on the consensus estimate, as the current quarter consensus estimate has risen nearly 6.3% in the past two months, while the full year estimate has increased 11.9%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This favorable trend is why the stock has just a Zacks Rank #2 (Buy) and why we are looking for better performance from the company in the near term.
Bottom Line
Tecnoglass Inc. is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Its strong Zacks Rank also indicates robust growth potential in the near future. However, the company’s prospects might be constrained due to adverse broader factors, as it has a sluggish industry rank (bottom 25% out of more than 250 industries). Nonetheless, over the past one year, the sector has clearly outperformed the broader market, as you can see below:
So, value investors might want to wait for the broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Is Tecnoglass Inc. (TGLS) a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Tecnoglass Inc. (TGLS - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Tecnoglass Inc. has a trailing twelve months PE ratio of 17.9, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 19.9. If we focus on the stock’s long-term PE trend, the current level puts Tecnoglass Inc.’s current PE ratio slightly above its midpoint (which is 16.7) over the past three years.
Further, the stock’s PE also compares favorably with the industry’s trailing twelve months PE ratio, which stands at 25.0. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Tecnoglass Inc. has a forward PE ratio (price relative to this year’s earnings) of 14.5, so it is fair to say that a slightly more value-oriented path may be ahead for Tecnoglass Inc.’s stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Tecnoglass Inc. has a P/S ratio of about 0.9. This is substantially lower than the S&P 500 average, which comes in at 3.5 right now. Also, as we can see in the chart below, this is somewhat below the highs for this stock in particular over the past few years.
If anything, this suggests some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Tecnoglass Inc. currently has a Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This makes TGLS a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Tecnoglass Inc. is just 0.7, a level that is slightly lower than the industry average of 1.3. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Additionally, its P/CF ratio (another great indicator of value) comes in at 10.0, which is marginally better than the industry average of 10.2. Clearly, TGLS is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Tecnoglass Inc. might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of A and a Momentum score of B. This gives TGLS a VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current quarter has seen one estimate go higher in the past sixty days, compared to none lower, while the full year estimate has seen two upward and no downward revisions in the same time period.
This has had a favorable impact on the consensus estimate, as the current quarter consensus estimate has risen nearly 6.3% in the past two months, while the full year estimate has increased 11.9%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Tecnoglass Inc. Price and Consensus
Tecnoglass Inc. Price and Consensus | Tecnoglass Inc. Quote
This favorable trend is why the stock has just a Zacks Rank #2 (Buy) and why we are looking for better performance from the company in the near term.
Bottom Line
Tecnoglass Inc. is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Its strong Zacks Rank also indicates robust growth potential in the near future. However, the company’s prospects might be constrained due to adverse broader factors, as it has a sluggish industry rank (bottom 25% out of more than 250 industries). Nonetheless, over the past one year, the sector has clearly outperformed the broader market, as you can see below:
So, value investors might want to wait for the broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>