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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ONESPAN (OSPN). OSPN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.62, while its industry has an average P/E of 28.47. Over the past 52 weeks, OSPN's Forward P/E has been as high as 14.05 and as low as 8.73, with a median of 11.50.
Investors should also recognize that OSPN has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to 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 4.98. Within the past 52 weeks, OSPN's P/B has been as high as 3.78 and as low as 2.01, with a median of 2.84.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. OSPN has a P/S ratio of 2.45. This compares to its industry's average P/S of 3.04.
Finally, we should also recognize that OSPN has a P/CF ratio of 8.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.22. Within the past 12 months, OSPN's P/CF has been as high as 26.28 and as low as 7.22, with a median of 9.86.
Value investors will likely look at more than just these metrics, but the above data helps show that ONESPAN is likely undervalued currently. And when considering the strength of its earnings outlook, OSPN sticks out as one of the market's strongest value stocks.
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ONESPAN INC (OSPN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).