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Should Value Investors Buy NetScout Systems (NTCT) Stock?
September 18, 2024

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 NetScout Systems (NTCT - Free Report) . NTCT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 17.09. Over the last 12 months, NTCT's Forward P/E has been as high as 12.42 and as low as 8.22, with a median of 9.80.

Finally, investors will want to recognize that NTCT has a P/CF ratio of 10.87. 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. NTCT's P/CF compares to its industry's average P/CF of 13.18. NTCT's P/CF has been as high as 13.90 and as low as 8.69, with a median of 10.80, all within the past year.

These are just a handful of the figures considered in NetScout Systems's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NTCT is an impressive value stock right now.




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