The proven Zacks Rank system focuses on estimating and reviewing earnings estimates to find winning stocks. Still, we know our readers each have their own perspective, so we always look to the latest trends in price, growth, and momentum to find strong picks.
With these trends in mind, value investing is clearly one of the most preferred methods of finding strong stocks in any type of market. Value investors rely on traditional forms of analysis of key valuation metrics to find stocks they believe are undervalued, leaving room for profit.
Zacks has developed an innovative Style Score system to highlight stocks with distinctive qualities. For example, value investors will be interested in stocks with good numbers in the “value” category. Combined with a high Zacks rank, “A” classes in the value category are among the most valued stocks in the market today.
stock to keep an eye on bend (bending), FLEX currently has a Zacks rank of #2 (Buy) and an A rating for Value. The forward P/E ratio of the stock is 8.70. This compares to the industry average forward P/E of 16.06. Over the past year, FLEX’s forward P/E ranged up to 9.69 and up to 6.28, with a median of 8.09.
We also note that the PEG ratio of FLEX is 0.68. This measure is used in the same way as the well-known P/E ratio, but the PEG ratio also takes into account the expected earnings growth of the stock. Currently, FLEX’s industry average PEG is 1.73. In the past year, FLEX’s PEG ranged from 0.78 to 0.42, with a median of 0.56.
We should also emphasize that FLEX has a P/B ratio of 2.23. Investors use the P/B ratio to look at a stock’s market value versus book value, which is defined as total assets minus total liabilities. The stock’s P/B looks solid against the industry average P/B of 3.72. Over the past 12 months, the P/B of FLEX ranged from 2.46 to 1.58, with a median of 2.02.
Value investors also often use the P/S ratio. This metric is found by dividing the stock price by the company’s sales. This is a preferred metric because earnings can’t really be manipulated, so sales are often a true indicator of performance. Flex has a P/S ratio of 0.33. This compares to the industry average P/S of 0.73.
Finally, we should also note that FLEX’s P/CF ratio is 7.23. 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 prospects. The company’s current P/CF looks solid compared to the industry average P/CF of 10.49. Over the past 52 weeks, the P/CF of FLEX ranged to 7.29 and to 4.70, with a median of 5.74.
These numbers are just a handful of metrics that value investors look at, but they show that the potential for flex isn’t far off right now. Given this, as well as the strength of its earnings outlook, Flex feels like a great value stock right now.
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Jax Investment Research