Should Value Investors Purchase Universal Electronics Stock (UEIC)?
Zacks focuses on the Zacks Rank system. This system emphasizes earnings estimates, revisions and estimate selections in order to identify great stocks. To highlight our strong picks, we pay attention to the most recent value, growth, or momentum trends.
Value investing is perhaps the most popular stock market trend. It has been successful in all market environments and is now more popular than any other. Value investors combine traditional valuation metrics with fundamental analysis to identify stocks they feel are undervalued.
Zacks has created its own Style Scores system to identify stocks with certain traits. The system’s Value category will appeal to value investors. Stocks that are both valued by Zacks Ranks and have high “A” grades in Value are some of the best value stocks currently on the market.
One stock you should keep an eye out for is Universal Electronics (UEIC). Currently, UEIC has a Zacks Rank #2 (Buy), and a Value Grade of A. The stock’s P/E ratio is 12.39. In comparison, the industry average P/E is 16.68. Over the past twelve months, UEIC’s Forward P/E has varied between 12.39 and 6.53, with a median 9.31.
Investors should also be aware that UEIC’s PEG ratio is 1.02. This popular metric is comparable to the P/E ratio. The difference is that the PEG also includes the company’s expected earnings growth rate. UEIC’s PEG is lower than the industry’s average PEG, which is 1.75. Over the past 12 month, UEIC’s PEG has varied between 1.10 and 0.83 with a median of 1.
Investors who value stocks love the P/S metric. This is simply calculated by dividing the stock price and the company’s sales. This metric is preferred by some people because it makes it harder to manipulate sales on an income statement. It could also be used as a performance indicator. UEIC has a ratio of P/S of 0.53. This is compared to the industry average P/S ratio of 0.67.
While value investors are likely to look at these metrics in addition, the data above shows that Universal Electronics is likely to be undervalued. UEIC is a strong value stock when you consider its earnings outlook.
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Universal Electronics Inc. (UEIC) : Free Stock Analysis Report