Are Investors Undervaluing Sharp (SHCAY) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 Sharp (SHCAY). SHCAY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for SHCAY is its P/B ratio of 2.81. 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 stock's P/B looks solid versus its industry's average P/B of 3.22. SHCAY's P/B has been as high as 4.49 and as low as 2.06, with a median of 3.45, over the past year.

Finally, investors should note that SHCAY has a P/CF ratio of 4.87. 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. SHCAY's current P/CF looks attractive when compared to its industry's average P/CF of 11.31. Over the past year, SHCAY's P/CF has been as high as 6.90 and as low as -9.02, with a median of -5.48.

Value investors will likely look at more than just these metrics, but the above data helps show that Sharp is likely undervalued currently. And when considering the strength of its earnings outlook, SHCAY sticks out as one of the market's strongest value stocks.

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

Zacks Investment Research

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