Yahoo Finance Is Information Services Group (III) Stock Undervalued Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Information Services Group (III). III is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.08, while its industry has an average P/E of 24.82. III's Forward P/E has been as high as 17.99 and as low as 9.08, with a median of 14.23, all within the past year.
We should also highlight that III has a P/B ratio of 2.36. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. III's current P/B looks attractive when compared to its industry's average P/B of 5.77. Over the past year, III's P/B has been as high as 3.88 and as low as 2.18, with a median of 3.11.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. III has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.9.
Finally, our model also underscores that III has a P/CF ratio of 9.32. 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 14.93. III's P/CF has been as high as 20.42 and as low as 8.63, with a median of 14.14, all within the past year.
If you're looking for another solid Consulting Services value stock, take a look at PAGEGROUP (MPGPF). MPGPF is a # 2 (Buy) stock with a Value score of A.
Additionally, PAGEGROUP has a P/B ratio of 3.86 while its industry's price-to-book ratio sits at 5.77. For MPGPF, this valuation metric has been as high as 6.25, as low as 3.18, with a median of 3.98 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Information Services Group and PAGEGROUP are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, III and MPGPF feels like a great value stock at the moment.
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Information Services Group, Inc. (III) : Free Stock Analysis Report
PAGEGROUP (MPGPF) : Free Stock Analysis Report
