Are Investors Undervaluing Flex (FLEX) 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.
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 to watch right now is Flex (FLEX). FLEX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.79. This compares to its industry's average Forward P/E of 20.17. FLEX's Forward P/E has been as high as 14.34 and as low as 8.31, with a median of 11.32, all within the past year.
Investors will also notice that FLEX has a PEG ratio of 0.82. 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. FLEX's industry currently sports an average PEG of 1.61. Over the last 12 months, FLEX's PEG has been as high as 1.36 and as low as 0.79, with a median of 0.93.
Another notable valuation metric for FLEX is its P/B ratio of 2.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FLEX's current P/B looks attractive when compared to its industry's average P/B of 7.31. Over the past year, FLEX's P/B has been as high as 2.93 and as low as 1.71, with a median of 2.61.
Finally, investors should note that FLEX has a P/CF ratio of 7.06. 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 20.73. FLEX's P/CF has been as high as 8.66 and as low as 5.29, with a median of 7.64, all within the past year.
These are only a few of the key metrics included in Flex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLEX looks like an impressive value stock at the moment.
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Flex Ltd. (FLEX): Free Stock Analysis Report
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