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.
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.
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.
One company to watch right now is Integer Holdings (ITGR). ITGR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.91, which compares to its industry's average of 27.66. Over the last 12 months, ITGR's Forward P/E has been as high as 24.87 and as low as 14.48, with a median of 19.42.
Another valuation metric that we should highlight is ITGR's P/B ratio of 2.12. 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. ITGR's current P/B looks attractive when compared to its industry's average P/B of 3.73. Within the past 52 weeks, ITGR's P/B has been as high as 2.99 and as low as 2.06, with a median of 2.62.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ITGR has a P/S ratio of 2.01. This compares to its industry's average P/S of 2.87.
Finally, we should also recognize that ITGR has a P/CF ratio of 17.72. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.94. Over the past year, ITGR's P/CF has been as high as 22.43 and as low as 17.18, with a median of 20.53.
These are only a few of the key metrics included in Integer Holdings'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, ITGR looks like an impressive value stock at the moment.
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Integer Holdings Corporation (ITGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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