Are Investors Undervaluing Five9 (FIVN) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.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 stock to keep an eye on is Five9 (FIVN). FIVN is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.65. This compares to its industry's average Forward P/E of 25.50. Over the past year, FIVN's Forward P/E has been as high as 17.13 and as low as 7.91, with a median of 10.99. Investors will also notice that FIVN has a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FIVN's PEG compares to its industry's average PEG of 0.91. Over the past 52 weeks, FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66. Another notable valuation metric for FIVN is its P/B ratio of 2.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FIVN's current P/B looks attractive when compared to its industry's average P/B of 4.39. Over the past 12 months, FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FIVN has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.86.Finally, we should also recognize that FIVN has a P/CF ratio of 12.96. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.17. Over the past 52 weeks, FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85.Another great Internet - Software stock you could consider is StoneCo (STNE), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.Shares of StoneCo are currently trading at a forward earnings multiple of 11.19 and a PEG ratio of 0.37 compared to its industry's P/E and PEG ratios of 25.50 and 0.91, respectively.Over the past year, STNE's P/E has been as high as 11.19, as low as 6.09, with a median of 8.65; its PEG ratio has been as high as 0.45, as low as 0.28, with a median of 0.35 during the same time period.Furthermore, StoneCo holds a P/B ratio of 2.71 and its industry's price-to-book ratio is 4.39. STNE's P/B has been as high as 2.71, as low as 0.88, with a median of 1.45 over the past 12 months.These figures are just a handful of the metrics value investors tend to look at, but they help show that Five9 and StoneCo are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FIVN and STNE feels like a great value stock at the moment.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks