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Should Value Investors Buy Universal Electronics (UEIC) Stock?

Zacks Equity Research
·2-min read

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Universal Electronics (UEIC). UEIC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.08 right now. For comparison, its industry sports an average P/E of 13.44. UEIC's Forward P/E has been as high as 11.62 and as low as 6.53, with a median of 9.31, all within the past year.

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Investors will also notice that UEIC has a PEG ratio of 1.02. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UEIC's PEG compares to its industry's average PEG of 1.45. UEIC's PEG has been as high as 1.16 and as low as 0.53, with a median of 1.03, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UEIC has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.7.

These are just a handful of the figures considered in Universal Electronics'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 UEIC is an impressive value stock right now.


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Universal Electronics Inc. (UEIC) : Free Stock Analysis Report
 
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Zacks Investment Research