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Is TTM Technologies (TTMI) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

TTM Technologies (TTMI - Free Report) is a stock many investors are watching right now. TTMI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.09 right now. For comparison, its industry sports an average P/E of 21.96. Over the past year, TTMI's Forward P/E has been as high as 15.23 and as low as 5.90, with a median of 8.59.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TTMI has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.92.

Finally, we should also recognize that TTMI has a P/CF ratio of 4.77. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TTMI's current P/CF looks attractive when compared to its industry's average P/CF of 12.13. Over the past 52 weeks, TTMI's P/CF has been as high as 7.64 and as low as 2.14, with a median of 3.99.

These are just a handful of the figures considered in TTM Technologies'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 TTMI is an impressive value stock right now.


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