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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
CTS (CTS) is a stock many investors are watching right now. CTS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 17.68. This compares to its industry's average Forward P/E of 21.91. Over the past year, CTS's Forward P/E has been as high as 18.54 and as low as 16.40, with a median of 17.72.
Investors should also note that CTS holds a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CTS's PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, CTS's PEG has been as high as 1.16 and as low as 1.03, with a median of 1.11.
We should also highlight that CTS has a P/B ratio of 2.23. 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. CTS's current P/B looks attractive when compared to its industry's average P/B of 3.23. Over the past 12 months, CTS's P/B has been as high as 3.35 and as low as 1.94, with a median of 2.44.
Finally, investors will want to recognize that CTS has a P/CF ratio of 12.83. 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. CTS's current P/CF looks attractive when compared to its industry's average P/CF of 19.21. CTS's P/CF has been as high as 20.06 and as low as 11.47, with a median of 14.70, all within the past year.
These are only a few of the key metrics included in CTS'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, CTS looks like an impressive value stock at the moment.
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CTS Corporation (CTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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