Are Investors Undervaluing Tactile Systems Technology (TCMD) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.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.One stock to keep an eye on is Tactile Systems Technology (TCMD). TCMD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.88, which compares to its industry's average of 28.74. Over the past 52 weeks, TCMD's Forward P/E has been as high as 26.13 and as low as 13.41, with a median of 18.82. Another valuation metric that we should highlight is TCMD's P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with 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 4.16. TCMD's P/B has been as high as 2.23 and as low as 1.08, with a median of 1.59, over the past year.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TCMD has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.47.Finally, we should also recognize that TCMD has a P/CF ratio of 13.57. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TCMD's P/CF compares to its industry's average P/CF of 20.70. Over the past 52 weeks, TCMD's P/CF has been as high as 21.40 and as low as 7.66, with a median of 14.00.Value investors will likely look at more than just these metrics, but the above data helps show that Tactile Systems Technology is likely undervalued currently. And when considering the strength of its earnings outlook, TCMD 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 Tactile Systems Technology, Inc. (TCMD): 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