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Should Value Investors Buy CommScope (COMM) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
CommScope (COMM - Free Report) is a stock many investors are watching right now. COMM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.32 right now. For comparison, its industry sports an average P/E of 22.27. Over the past year, COMM's Forward P/E has been as high as 14.67 and as low as 6.99, with a median of 10.43.
Investors will also notice that COMM has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COMM's industry currently sports an average PEG of 4.50. Over the past 52 weeks, COMM's PEG has been as high as 3.04 and as low as 0.86, with a median of 1.46.
Investors should also recognize that COMM has a P/B ratio of 2.76. The P/B ratio pits a stock's market value against 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 4.07. Over the past year, COMM's P/B has been as high as 4.41 and as low as 1.65, with a median of 2.82.
Finally, we should also recognize that COMM has a P/CF ratio of 9.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. COMM's P/CF compares to its industry's average P/CF of 10.62. Over the past 52 weeks, COMM's P/CF has been as high as 13.84 and as low as 5.04, with a median of 9.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CommScope is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, COMM feels like a great value stock at the moment.
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Should Value Investors Buy CommScope (COMM) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
CommScope (COMM - Free Report) is a stock many investors are watching right now. COMM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.32 right now. For comparison, its industry sports an average P/E of 22.27. Over the past year, COMM's Forward P/E has been as high as 14.67 and as low as 6.99, with a median of 10.43.
Investors will also notice that COMM has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COMM's industry currently sports an average PEG of 4.50. Over the past 52 weeks, COMM's PEG has been as high as 3.04 and as low as 0.86, with a median of 1.46.
Investors should also recognize that COMM has a P/B ratio of 2.76. The P/B ratio pits a stock's market value against 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 4.07. Over the past year, COMM's P/B has been as high as 4.41 and as low as 1.65, with a median of 2.82.
Finally, we should also recognize that COMM has a P/CF ratio of 9.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. COMM's P/CF compares to its industry's average P/CF of 10.62. Over the past 52 weeks, COMM's P/CF has been as high as 13.84 and as low as 5.04, with a median of 9.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CommScope is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, COMM feels like a great value stock at the moment.