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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
8x8 (EGHT) is a stock many investors are watching right now. EGHT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors will also notice that EGHT has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGHT's industry currently sports an average PEG of 0.99. Within the past year, EGHT's PEG has been as high as 0.79 and as low as 0.35, with a median of 0.59.
We should also highlight that EGHT has a P/B ratio of 2.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.05. EGHT's P/B has been as high as 4.01 and as low as 1.70, with a median of 2.31, over the past year.
These are just a handful of the figures considered in 8x8's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EGHT is an impressive value stock right now.
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8x8 Inc (EGHT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
