Yahoo Finance Are Investors Undervaluing Orange (ORAN) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Orange (ORAN). ORAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.84. This compares to its industry's average Forward P/E of 11.65. Over the past 52 weeks, ORAN's Forward P/E has been as high as 10.33 and as low as 7.56, with a median of 8.97.
Another notable valuation metric for ORAN is its P/B ratio of 0.91. 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 2.01. Within the past 52 weeks, ORAN's P/B has been as high as 0.94 and as low as 0.62, with a median of 0.74.
Another great Wireless Non-US stock you could consider is SoftBank Group (SFTBY), which is a # 2 (Buy) stock with a Value Score of A.
SoftBank Group also has a P/B ratio of 0.81 compared to its industry's price-to-book ratio of 2.01. Over the past year, its P/B ratio has been as high as 1.09, as low as 0.56, with a median of 0.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Orange and SoftBank Group are likely undervalued currently. And when considering the strength of its earnings outlook, ORAN and SFTBY sticks out as one of the market's strongest value stocks.
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Orange (ORAN) : Free Stock Analysis Report
SoftBank Group Corp. Unsponsored ADR (SFTBY) : Free Stock Analysis Report
