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Is Ntt Data Corporation (NTDTY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Ntt Data Corporation (NTDTY - Free Report) . NTDTY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 20.07. This compares to its industry's average Forward P/E of 43.39. NTDTY's Forward P/E has been as high as 21.39 and as low as 16.10, with a median of 18.60, all within the past year.

NTDTY is also sporting a PEG ratio of 2.67. 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. NTDTY's PEG compares to its industry's average PEG of 2.68. NTDTY's PEG has been as high as 2.67 and as low as 2.01, with a median of 2.18, all within the past year.

Investors should also recognize that NTDTY has a P/B ratio of 2.21. The P/B is a method of comparing a stock's market value to 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 3.95. Over the past year, NTDTY's P/B has been as high as 2.21 and as low as 1.71, with a median of 1.99.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NTDTY has a P/S ratio of 0.99. This compares to its industry's average P/S of 2.02.

These are just a handful of the figures considered in Ntt Data Corporation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NTDTY is an impressive value stock right now.


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