Should Value Investors Buy CSG Systems International (CSGS) Stock?

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.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.CSG Systems International (CSGS) is a stock many investors are watching right now. CSGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.45 right now. For comparison, its industry sports an average P/E of 16.58. Over the past year, CSGS's Forward P/E has been as high as 14.17 and as low as 9.56, with a median of 11.07.We also note that CSGS holds a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSGS's PEG compares to its industry's average PEG of 1.52. Over the last 12 months, CSGS's PEG has been as high as 1.42 and as low as 0.96, with a median of 1.11.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CSGS has a P/S ratio of 1.55. This compares to its industry's average P/S of 2.17.Finally, our model also underscores that CSGS has a P/CF ratio of 11.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CSGS's P/CF compares to its industry's average P/CF of 12.73. Within the past 12 months, CSGS's P/CF has been as high as 11.94 and as low as 8.36, with a median of 9.93.These figures are just a handful of the metrics value investors tend to look at, but they help show that CSG Systems International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSGS feels like a great value stock at the moment.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 CSG Systems International, Inc. (CSGS): 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