Should Value Investors Buy TriNet (TNET) Stock?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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.

TriNet (TNET) is a stock many investors are watching right now. TNET is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.76 right now. For comparison, its industry sports an average P/E of 17.79. Over the past 52 weeks, TNET's Forward P/E has been as high as 19.82 and as low as 12.04, with a median of 16.29.

Finally, investors will want to recognize that TNET has a P/CF ratio of 12.26. 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. TNET's P/CF compares to its industry's average P/CF of 15.46. Over the past 52 weeks, TNET's P/CF has been as high as 15.80 and as low as 10.38, with a median of 12.48.

These figures are just a handful of the metrics value investors tend to look at, but they help show that TriNet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TNET feels like a great value stock at the moment.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research