Is Flex (FLEX) 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...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Flex (FLEX). FLEX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.12 right now. For comparison, its industry sports an average P/E of 20.29. Over the past 52 weeks, FLEX's Forward P/E has been as high as 14.34 and as low as 8.57, with a median of 11.32.
FLEX is also sporting a PEG ratio of 0.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FLEX's PEG compares to its industry's average PEG of 1.60. FLEX's PEG has been as high as 1.36 and as low as 0.79, with a median of 0.91, all within the past year.
Another notable valuation metric for FLEX is its P/B ratio of 2.65. 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 solid versus its industry's average P/B of 7.31. FLEX's P/B has been as high as 2.93 and as low as 1.77, with a median of 2.61, over the past year.
Finally, investors will want to recognize that FLEX has a P/CF ratio of 7.32. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FLEX's current P/CF looks attractive when compared to its industry's average P/CF of 20.63. Within the past 12 months, FLEX's P/CF has been as high as 8.66 and as low as 5.29, with a median of 7.64.
Value investors will likely look at more than just these metrics, but the above data helps show that Flex is likely undervalued currently. And when considering the strength of its earnings outlook, FLEX sticks out at as one of the market's strongest value stocks.
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