Are Investors Undervaluing PCM (PCMI) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 PCM (PCMI). PCMI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.55. This compares to its industry's average Forward P/E of 11.13. Over the past year, PCMI's Forward P/E has been as high as 14.39 and as low as 5.91, with a median of 8.22.
Investors should also note that PCMI holds a PEG ratio of 0.48. 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. PCMI's industry currently sports an average PEG of 1.01. Within the past year, PCMI's PEG has been as high as 0.72 and as low as 0.30, with a median of 0.41.
Value investors will likely look at more than just these metrics, but the above data helps show that PCM is likely undervalued currently. And when considering the strength of its earnings outlook, PCMI sticks out at as one of the market's strongest value stocks.
PCM, Inc. (PCMI): Free Stock Analysis Report
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