Is Conduent (CNDT) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Conduent (CNDT – Free Report) . CNDT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.48, while its industry has an average P/E of 24.73. Over the past 52 weeks, CNDT’s Forward P/E has been as high as 12.77 and as low as 5.83, with a median of 9.90.

Finally, our model also underscores that CNDT has a P/CF ratio of 5.06. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CNDT’s P/CF compares to its industry’s average P/CF of 17.06. CNDT’s P/CF has been as high as 5.63 and as low as 1.64, with a median of 4.04, all within the past year.

These are only a few of the key metrics included in Conduent’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, CNDT looks like an impressive value stock at the moment.