Is Computer Programs and Systems (CPSI) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
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.
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.
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 stock to keep an eye on is Computer Programs and Systems (CPSI). CPSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that CPSI has a P/B ratio of 2.47. The P/B ratio pits a stock's market value against 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 4.60. Over the past year, CPSI's P/B has been as high as 2.51 and as low as 1.90, with a median of 2.18.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPSI has a P/S ratio of 1.95. This compares to its industry's average P/S of 4.27.
Finally, our model also underscores that CPSI has a P/CF ratio of 15.19. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.59. Within the past 12 months, CPSI's P/CF has been as high as 17.50 and as low as 10.07, with a median of 14.63.
These are just a handful of the figures considered in Computer Programs and Systems'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 CPSI is an impressive value stock right now.
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Computer Programs and Systems, Inc. (CPSI): Free Stock Analysis Report
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