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Should Value Investors Buy inTest (INTT) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is inTest (INTT). INTT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.59, which compares to its industry's average of 22.29. INTT's Forward P/E has been as high as 31.74 and as low as 9.59, with a median of 13.06, all within the past year.

INTT is also sporting a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. INTT's PEG compares to its industry's average PEG of 2.61. Within the past year, INTT's PEG has been as high as 3.17 and as low as 0.96, with a median of 1.31.

We should also highlight that INTT has a P/B ratio of 2.27. Investors use the P/B ratio to look at a stock's market value versus 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 6.57. INTT's P/B has been as high as 4 and as low as 1.67, with a median of 2.62, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. INTT has a P/S ratio of 1.55. This compares to its industry's average P/S of 3.39.

Finally, investors will want to recognize that INTT has a P/CF ratio of 11.15. 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. INTT's P/CF compares to its industry's average P/CF of 37.10. Over the past 52 weeks, INTT's P/CF has been as high as 40.78 and as low as 10.27, with a median of 16.94.

Value investors will likely look at more than just these metrics, but the above data helps show that inTest is likely undervalued currently. And when considering the strength of its earnings outlook, INTT sticks out at as one of the market's strongest value stocks.


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