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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is TaskUs (TASK). TASK is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.89 right now. For comparison, its industry sports an average P/E of 26.38. TASK's Forward P/E has been as high as 13.69 and as low as 8.07, with a median of 11.23, all within the past year.
Investors should also note that TASK holds a PEG ratio of 1.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TASK's PEG compares to its industry's average PEG of 2.17. TASK's PEG has been as high as 3.12 and as low as 0.94, with a median of 2.15, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TASK has a P/S ratio of 1.2. This compares to its industry's average P/S of 2.17.
Value investors will likely look at more than just these metrics, but the above data helps show that TaskUs is likely undervalued currently. And when considering the strength of its earnings outlook, TASK sticks out as one of the market's strongest value stocks.
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TaskUs, Inc. (TASK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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