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Are Investors Undervaluing Scor (SCRYY) Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Scor (SCRYY - Free Report) is a stock many investors are watching right now. SCRYY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 8.72. Over the last 12 months, SCRYY's Forward P/E has been as high as 28.38 and as low as -302.80, with a median of 7.31.

Another notable valuation metric for SCRYY is its P/B ratio of 1.25. 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 attractive against its industry's average P/B of 2.56. Over the past year, SCRYY's P/B has been as high as 1.32 and as low as 0.76, with a median of 1.01.

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. SCRYY has a P/S ratio of 0.36. This compares to its industry's average P/S of 1.06.

These are only a few of the key metrics included in Scor'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, SCRYY looks like an impressive value stock at the moment.

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