In This Article:
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Cimpress (CMPR) is a stock many investors are watching right now. CMPR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
CMPR is also sporting a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMPR's PEG compares to its industry's average PEG of 1.04. Over the last 12 months, CMPR's PEG has been as high as 1.13 and as low as 0.62, with a median of 0.79.
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. CMPR has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.65.
Finally, we should also recognize that CMPR has a P/CF ratio of 6.68. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.88. CMPR's P/CF has been as high as 410.70 and as low as 6.32, with a median of 9.75, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cimpress is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMPR feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report