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Is Magic Software Enterprises (MGIC) a Great Value Stock 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Magic Software Enterprises (MGIC). MGIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.82, which compares to its industry's average of 30.82. Over the past year, MGIC's Forward P/E has been as high as 13.62 and as low as 7.36, with a median of 10.82.

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Finally, investors will want to recognize that MGIC has a P/CF ratio of 9.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.75. Over the past year, MGIC's P/CF has been as high as 11.27 and as low as 6.61, with a median of 9.18.

These are just a handful of the figures considered in Magic Software Enterprises'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 MGIC is an impressive value stock right now.

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Magic Software Enterprises Ltd. (MGIC) : Free Stock Analysis Report

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