Yahoo Finance Should Value Investors Buy QuoteMedia (QMCI) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
QuoteMedia (QMCI) is a stock many investors are watching right now. QMCI 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 14.56, which compares to its industry's average of 23.44. Over the past 52 weeks, QMCI's Forward P/E has been as high as 47.62 and as low as 14.56, with a median of 28.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. QMCI has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.56.
Finally, we should also recognize that QMCI has a P/CF ratio of 9.10. 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. QMCI's current P/CF looks attractive when compared to its industry's average P/CF of 20. Over the past 52 weeks, QMCI's P/CF has been as high as 15.37 and as low as 8.02, with a median of 11.09.
These figures are just a handful of the metrics value investors tend to look at, but they help show that QuoteMedia is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, QMCI feels like a great value stock at the moment.
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QuoteMedia Inc. (QMCI) : Free Stock Analysis Report
