Yahoo Finance Is Tactile Systems Technology (TCMD) Stock Undervalued 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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Tactile Systems Technology (TCMD). TCMD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 25.98 right now. For comparison, its industry sports an average P/E of 34.58. TCMD's Forward P/E has been as high as 77,732.22 and as low as -13,915.84, with a median of 44.02, all within the past year.
Another notable valuation metric for TCMD is its P/B ratio of 1.92. 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 attractive against its industry's average P/B of 4.57. Within the past 52 weeks, TCMD's P/B has been as high as 3.75 and as low as 1.28, with a median of 2.54.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TCMD has a P/S ratio of 1.33. This compares to its industry's average P/S of 3.6.
Finally, investors should note that TCMD has a P/CF ratio of 10.74. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.14. TCMD's P/CF has been as high as 240.14 and as low as -29.22, with a median of 11.17, all within the past year.
These are only a few of the key metrics included in Tactile Systems Technology'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, TCMD looks like an impressive value stock at the moment.
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Tactile Systems Technology, Inc. (TCMD) : Free Stock Analysis Report
