Yahoo Finance Should Value Investors Buy Universal Electronics (UEIC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 stock to keep an eye on is Universal Electronics (UEIC). UEIC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.39, while its industry has an average P/E of 16.68. Over the last 12 months, UEIC's Forward P/E has been as high as 12.39 and as low as 6.53, with a median of 9.31.
Investors should also note that UEIC holds a PEG ratio of 1.02. 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. UEIC's PEG compares to its industry's average PEG of 1.75. Over the last 12 months, UEIC's PEG has been as high as 1.10 and as low as 0.83, with a median of 1.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UEIC has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Electronics is likely undervalued currently. And when considering the strength of its earnings outlook, UEIC sticks out at as one of the market's strongest value stocks.
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Universal Electronics Inc. (UEIC) : Free Stock Analysis Report
