The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Ceragon Networks (CRNT). CRNT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also recognize that CRNT has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.22. Over the past year, CRNT's P/B has been as high as 2.81 and as low as 0.95, with a median of 1.32.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRNT has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ceragon Networks is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRNT feels like a great value stock at the moment.
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Ceragon Networks Ltd. (CRNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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