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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Tecnoglass (TGLS) is a stock many investors are watching right now. TGLS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.61, which compares to its industry’s average of 16.18. Over the last 12 months, TGLS’s Forward P/E has been as high as 17.76 and as low as 10.40, with a median of 13.58.
TGLS is also sporting a PEG ratio of 0.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. TGLS’s industry has an average PEG of 1.21 right now. TGLS’s PEG has been as high as 0.89 and as low as 0.52, with a median of 0.68, all within the past year.
Finally, we should also recognize that TGLS has a P/CF ratio of 8.22. 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 stock’s P/CF looks attractive against its industry’s average P/CF of 12.43. Over the past year, TGLS’s P/CF has been as high as 12.94 and as low as 7.70, with a median of 9.09.
These are just a handful of the figures considered in Tecnoglass’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 TGLS is an impressive value stock right now.
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