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Are Investors Undervaluing inTest (INTT) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is inTest (INTT - Free Report) . INTT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that INTT has a PEG ratio of 0.69. 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. INTT's industry currently sports an average PEG of 1.65. INTT's PEG has been as high as 1.27 and as low as 0.57, with a median of 0.92, all within the past year.

Another notable valuation metric for INTT is its P/B ratio of 1.69. 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 stock's P/B looks attractive against its industry's average P/B of 4.21. Within the past 52 weeks, INTT's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.86.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. INTT has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.02.

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


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