W.While the time-tested Zacks Rank puts emphasis on earnings estimates and valuation revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we’re always looking for value, growth, and dynamic trends to discover great companies.
Of these, value investing is one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.
Zacks developed the innovative Style Scores system to highlight stocks with certain characteristics. Value investors are interested in stocks with good grades in the “Value” category, for example. Combined with a high Zacks rank, the “A” ratings in the Value category are some of the strongest value stocks on the market today.
One company value that investors may notice is the Computer Task Group (CTG). CTG currently has a Zacks rank of # 2 (Buy) and a value rating of A. The stock has a forward P / E of 17.38. This compares to the industry’s average forward P / E of 30.47. Last year, CTG’s forward P / E was 17.76 and 11.84, with a median of 14.22.
Investors should also note that CTG holds a PEG ratio of 0.87. This number is similar to the commonly used P / E ratio, with the PEG ratio also taking into account a company’s expected earnings growth rate. CTG’s PEG compares to its industry average PEG of 2.46. Last year, CTG’s PEG was 1.18 and 0.74 with a median of 0.89.
Finally, our model also underlines that CTG has a PER of 13.70. This metric takes into account a company’s operating cash flow and can be used to find stocks that are undervalued due to their solid cash outlook. CTG’s current P / E looks attractive compared to the industry’s average P / E of 36.28. For the past 52 weeks, the P / CF of CTG was as high as 13.83 and as low as 6.25, with a median of 7.78.
These are just a few of the key metrics featured in Computer Task Group’s strong value scoring, but they do show the stock is likely undervalued right now. Given the strong earnings outlook, CTG looks like an impressive value stock right now.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.