Is Integer (ITGR) A Great Value Stock Right Now?
Zacks Investment Research | Sep 29, 2019 09:10PM ET
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Integer (ITGR). ITGR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.94 right now. For comparison, its industry sports an average P/E of 31.56. ITGR's Forward P/E has been as high as 22.21 and as low as 14.99, with a median of 18.41, all within the past year.
Investors should also note that ITGR holds a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ITGR's PEG compares to its industry's average PEG of 2.57.
We should also highlight that ITGR has a P/B ratio of 2.24. 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. This stock's P/B looks solid versus its industry's average P/B of 3.62. Over the past 12 months, ITGR's P/B has been as high as 2.91 and as low as 2.05, with a median of 2.39.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ITGR has a P/S ratio of 1.97. This compares to its industry's average P/S of 3.26.
Finally, we should also recognize that ITGR has a P/CF ratio of 7.82. 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 outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.73. ITGR's P/CF has been as high as 13.12 and as low as 6.59, with a median of 8.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Integer is likely undervalued currently. And when considering the strength of its earnings outlook, ITGR sticks out at as one of the market's strongest value stocks.
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