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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Progress Software (PRGS). PRGS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
PRGS is also sporting a PEG ratio of 1.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PRGS's PEG compares to its industry's average PEG of 1.62. Within the past year, PRGS's PEG has been as high as 7.23 and as low as 1.47, with a median of 2.21.
We should also highlight that PRGS has a P/B ratio of 4. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.50. PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89, over 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PRGS has a P/S ratio of 1.84. This compares to its industry's average P/S of 4.95.
Finally, investors should note that PRGS has a P/CF ratio of 9.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PRGS's P/CF compares to its industry's average P/CF of 18.94. PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83, all within the past year.
These are just a handful of the figures considered in Progress Software'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 PRGS is an impressive value stock right now.
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Progress Software Corporation (PRGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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