The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
8x8 (EGHT) is a stock many investors are watching right now. EGHT is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that EGHT has a PEG ratio of 0.71. 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. EGHT's industry has an average PEG of 1.12 right now. Within the past year, EGHT's PEG has been as high as 0.79 and as low as 0.35, with a median of 0.59.
We should also highlight that EGHT has a P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.36. Over the past 12 months, EGHT's P/B has been as high as 4.01 and as low as 1.70, with a median of 2.31.
These are just a handful of the figures considered in 8x8'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 EGHT is an impressive value stock right now.
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8x8 Inc (EGHT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).