Is Sensata Technologies Holding (ST) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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.One company value investors might notice is Sensata Technologies Holding (ST). 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 9.44, which compares to its industry's average of 18.98. ST's Forward P/E has been as high as 10.18 and as low as 5.38, with a median of 8.77, all within the past year. We also note that ST holds a PEG ratio of 1.23. 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. ST's PEG compares to its industry's average PEG of 2.26. Within the past year, ST's PEG has been as high as 1.37 and as low as 0.72, with a median of 1.13. Investors should also recognize that ST has a P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ST's current P/B looks attractive when compared to its industry's average P/B of 3.85. Over the past 12 months, ST's P/B has been as high as 1.93 and as low as 0.91, with a median of 1.50.Value investors also use the P/S ratio. The P/S ratio 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. ST has a P/S ratio of 1.3. This compares to its industry's average P/S of 2.7.Finally, we should also recognize that ST has a P/CF ratio of 8.80. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.04. ST's P/CF has been as high as 9.26 and as low as 4.54, with a median of 7.12, all within the past year.These are only a few of the key metrics included in Sensata Technologies Holding'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, ST looks like an impressive value stock at the moment.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free 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