Is Lenovo Group Ltd. (LNVGY) Stock Undervalued 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. Nevertheless, we are always paying attention to...
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.
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 value investors might notice is Lenovo Group Ltd. (LNVGY). LNVGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.52, which compares to its industry's average of 23.70. LNVGY's Forward P/E has been as high as 13.60 and as low as 6.87, with a median of 9.42, all within the past year.
Investors will also notice that LNVGY has a PEG ratio of 0.70. 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. LNVGY's industry has an average PEG of 1.90 right now. Over the last 12 months, LNVGY's PEG has been as high as 1.29 and as low as 0.39, with a median of 0.54.
Finally, our model also underscores that LNVGY has a P/CF ratio of 7.35. 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. LNVGY's P/CF compares to its industry's average P/CF of 26.14. Within the past 12 months, LNVGY's P/CF has been as high as 9.42 and as low as 4.36, with a median of 6.40.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lenovo Group Ltd. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LNVGY feels like a great value stock at the moment.
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Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
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