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Are Investors Undervaluing Vishay Intertechnology (VSH) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9 right now. For comparison, its industry sports an average P/E of 18.08. Over the past year, VSH's Forward P/E has been as high as 15.59 and as low as 7.61, with a median of 11.93.
VSH is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VSH's industry has an average PEG of 1.97 right now. Over the last 12 months, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.20.
Another valuation metric that we should highlight is VSH's P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.02. Over the past year, VSH's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VSH has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.4.
Finally, we should also recognize that VSH has a P/CF ratio of 12.60. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.91. Over the past year, VSH's P/CF has been as high as 23.27 and as low as 10.95, with a median of 17.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Vishay Intertechnology is likely undervalued currently. And when considering the strength of its earnings outlook, VSH sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Vishay Intertechnology (VSH) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9 right now. For comparison, its industry sports an average P/E of 18.08. Over the past year, VSH's Forward P/E has been as high as 15.59 and as low as 7.61, with a median of 11.93.
VSH is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VSH's industry has an average PEG of 1.97 right now. Over the last 12 months, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.20.
Another valuation metric that we should highlight is VSH's P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.02. Over the past year, VSH's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VSH has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.4.
Finally, we should also recognize that VSH has a P/CF ratio of 12.60. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.91. Over the past year, VSH's P/CF has been as high as 23.27 and as low as 10.95, with a median of 17.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Vishay Intertechnology is likely undervalued currently. And when considering the strength of its earnings outlook, VSH sticks out at as one of the market's strongest value stocks.