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Is Information Services Group (III) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Information Services Group (III - Free Report) . III is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.53. This compares to its industry's average Forward P/E of 19.09. Over the last 12 months, III's Forward P/E has been as high as 13.62 and as low as 9.44, with a median of 10.90.

Investors will also notice that III has a PEG ratio of 0.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. III's industry currently sports an average PEG of 1.66. Over the past 52 weeks, III's PEG has been as high as 0.99 and as low as 0.67, with a median of 0.80.

Investors should also recognize that III has a P/B ratio of 2.46. 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. III's current P/B looks attractive when compared to its industry's average P/B of 6.07. III's P/B has been as high as 3.41 and as low as 2.41, with a median of 2.69, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. III has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.31.

These are only a few of the key metrics included in Information Services Group'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, III looks like an impressive value stock at the moment.


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