Yahoo Finance Are Investors Undervaluing Celestica (CLS) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Celestica (CLS). CLS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.47 right now. For comparison, its industry sports an average P/E of 9.49. CLS's Forward P/E has been as high as 9.44 and as low as 4.65, with a median of 6.18, all within the past year.
Investors should also note that CLS holds a PEG ratio of 0.29. 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. CLS's PEG compares to its industry's average PEG of 0.65. Over the last 12 months, CLS's PEG has been as high as 0.93 and as low as 0.28, with a median of 0.41.
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. CLS has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.35.
Finally, investors will want to recognize that CLS has a P/CF ratio of 4.82. 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. CLS's current P/CF looks attractive when compared to its industry's average P/CF of 5.85. Over the past year, CLS's P/CF has been as high as 6.97 and as low as 3.74, with a median of 5.25.
Another great Electronics - Manufacturing Services stock you could consider is Jabil (JBL), which is a # 1 (Strong Buy) stock with a Value Score of A.
Jabil is currently trading with a Forward P/E ratio of 8.19 while its PEG ratio sits at 0.68. Both of the company's metrics compare favorably to its industry's average P/E of 9.49 and average PEG ratio of 0.65.
Over the past year, JBL's P/E has been as high as 10.74, as low as 6.46, with a median of 7.86; its PEG ratio has been as high as 0.89, as low as 0.54, with a median of 0.41 during the same time period.
Jabil also has a P/B ratio of 3.63 compared to its industry's price-to-book ratio of 2.62. Over the past year, its P/B ratio has been as high as 4.64, as low as 2.95, with a median of 3.57.
These are just a handful of the figures considered in Celestica and Jabil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CLS and JBL is an impressive value stock right now.
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Celestica, Inc. (CLS) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
