Should Value Investors Buy TDK (TTDKY) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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 company to watch right now is TDK (TTDKY). TTDKY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 19.97, while its industry has an average P/E of 23.35. Over the past year, TTDKY's Forward P/E has been as high as 92.67 and as low as 11.94, with a median of 16.64. We also note that TTDKY holds a PEG ratio of 1.50. 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. TTDKY's PEG compares to its industry's average PEG of 1.55. Within the past year, TTDKY's PEG has been as high as 3.58 and as low as 0.51, with a median of 0.91. Another notable valuation metric for TTDKY is its P/B ratio of 2.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TTDKY's current P/B looks attractive when compared to its industry's average P/B of 3.91. Over the past 12 months, TTDKY's P/B has been as high as 2.34 and as low as 1.38, with a median of 1.89.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. TTDKY has a P/S ratio of 1.61. This compares to its industry's average P/S of 2.25.Finally, investors should note that TTDKY has a P/CF ratio of 11.65. 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. TTDKY's P/CF compares to its industry's average P/CF of 19.37. Within the past 12 months, TTDKY's P/CF has been as high as 12.11 and as low as 6.71, with a median of 9.42.These are only a few of the key metrics included in TDK'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, TTDKY looks like an impressive value stock at the moment.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 TDK Corp. (TTDKY): 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