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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is NetScout Systems (NTCT). NTCT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.76, which compares to its industry's average of 19.93. Over the past 52 weeks, NTCT's Forward P/E has been as high as 11.05 and as low as 8.24, with a median of 9.62.
Finally, investors should note that NTCT has a P/CF ratio of 12.52. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.94. NTCT's P/CF has been as high as 14.90 and as low as 10.68, with a median of 12.89, all within the past year.
These are just a handful of the figures considered in NetScout Systems'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 NTCT is an impressive value stock right now.
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NetScout Systems, Inc. (NTCT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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