Are Investors Undervaluing PLDT (PHI) Right Now?
In This Article:
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 PLDT (PHI). PHI 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 8.54 right now. For comparison, its industry sports an average P/E of 10.23. Over the past 52 weeks, PHI's Forward P/E has been as high as 9.57 and as low as 7.01, with a median of 8.29.
Finally, investors should note that PHI has a P/CF ratio of 3.39. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 3.87. Within the past 12 months, PHI's P/CF has been as high as 3.80 and as low as 2.25, with a median of 2.81.
These are only a few of the key metrics included in PLDT'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, PHI looks like an impressive value stock at the moment.
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
PLDT Inc. (PHI) : Free Stock Analysis Report