Should Value Investors Buy TPG Mortgage Investment Trust Inc. (MITT) Stock?

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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is TPG Mortgage Investment Trust Inc. (MITT). MITT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.93 right now. For comparison, its industry sports an average P/E of 7.95. Over the past 52 weeks, MITT's Forward P/E has been as high as 8.56 and as low as 5.28, with a median of 6.71.

Another notable valuation metric for MITT is its P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.94. Within the past 52 weeks, MITT's P/B has been as high as 0.74 and as low as 0.53, with a median of 0.67.

Finally, our model also underscores that MITT has a P/CF ratio of 3.89. 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 6.88. Over the past year, MITT's P/CF has been as high as 3.91 and as low as 2.25, with a median of 3.26.

These are only a few of the key metrics included in TPG Mortgage Investment Trust Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MITT looks like an impressive value stock at the moment.

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

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