Are Investors Undervaluing Sensata Technologies Holding (ST) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.Sensata Technologies Holding (ST) is a stock many investors are watching right now. ST is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.15, which compares to its industry's average of 18.25. Over the past year, ST's Forward P/E has been as high as 10.14 and as low as 5.38, with a median of 8.77. We also note that ST holds a PEG ratio of 1.19. 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. ST's industry currently sports an average PEG of 2.17. Over the last 12 months, ST's PEG has been as high as 1.37 and as low as 0.72, with a median of 1.13. Another valuation metric that we should highlight is ST's P/B ratio of 1.63. The P/B is a method of comparing a stock's market value to 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 3.72. ST's P/B has been as high as 1.85 and as low as 0.91, with a median of 1.50, 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ST has a P/S ratio of 1.22. This compares to its industry's average P/S of 2.42.Finally, our model also underscores that ST has a P/CF ratio of 8.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.40. Over the past year, ST's P/CF has been as high as 8.92 and as low as 4.54, with a median of 7.12.Value investors will likely look at more than just these metrics, but the above data helps show that Sensata Technologies Holding is likely undervalued currently. And when considering the strength of its earnings outlook, ST sticks out as one of the market's strongest value stocks.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 Sensata Technologies Holding N.V. (ST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks