In aggregate, Lumen Technologies currently has a Zacks Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This does not provide us with a conclusive direction as to the relative valuation of the stock in comparison to its historical trend. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.Īs we can see, the stock is trading at its median value for the time period from a P/S metric. This is lower than the S&P 500 average, which comes in at 4.94 right now. Right now, Lumen Technologies has a P/S ratio of about 0.69. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. P/S RatioĪnother key metric to note is the Price/Sales ratio. However, we should point out that Lumen Technologies has a forward PE ratio (price relative to this year’s earnings) of 7.62, so we might say that the forward earnings estimates indicate that the company’s share price will likely appreciate in the near future. On this front, Lumen Technologies has a trailing twelve months PE ratio of 7.04, as you can see in the chart below: The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past b) how it compares to the average for the industry/sector and c) how it compares to the market as a whole. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. LUMN stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE RatioĪ key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value? Value investing is easily one of the most popular ways to find great stocks in any market environment.
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