Yahoo Finance Are Investors Undervaluing IBEX Limited (IBEX) Right Now?
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.
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.
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 company to watch right now is IBEX Limited (IBEX). IBEX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 15.92 right now. For comparison, its industry sports an average P/E of 18.25. Over the past year, IBEX's Forward P/E has been as high as 17.93 and as low as 9.45, with a median of 12.34.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBEX has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that IBEX has a P/CF ratio of 9.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. IBEX's current P/CF looks attractive when compared to its industry's average P/CF of 13.73. Over the past 52 weeks, IBEX's P/CF has been as high as 10.55 and as low as 4.98, with a median of 6.06.
If you're looking for another solid Business - Services value stock, take a look at Sodexo (SDXAY). SDXAY is a # 1 (Strong Buy) stock with a Value score of A.
Sodexo also has a P/B ratio of 2.82 compared to its industry's price-to-book ratio of 4. Over the past year, its P/B ratio has been as high as 3.52, as low as 2.24, with a median of 2.76.
Value investors will likely look at more than just these metrics, but the above data helps show that IBEX Limited and Sodexo are likely undervalued currently. And when considering the strength of its earnings outlook, IBEX and SDXAY sticks out as one of the market's strongest value stocks.
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
IBEX Limited (IBEX) : Free Stock Analysis Report
Sodexo S.A. Sponsored ADR (SDXAY) : Free Stock Analysis Report
