Should Value Investors Buy ONESPAN (OSPN) 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.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 ONESPAN (OSPN). OSPN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.62 right now. For comparison, its industry sports an average P/E of 24.93. Over the last 12 months, OSPN's Forward P/E has been as high as 14.05 and as low as 8.73, with a median of 11.50. Investors should also recognize that OSPN has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. OSPN's current P/B looks attractive when compared to its industry's average P/B of 4.29. Over the past year, OSPN's P/B has been as high as 3.78 and as low as 2.01, with a median of 2.84.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OSPN has a P/S ratio of 2.14. This compares to its industry's average P/S of 2.8.Finally, investors will want to recognize that OSPN has a P/CF ratio of 8.92. 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. OSPN's P/CF compares to its industry's average P/CF of 13.88. Over the past year, OSPN's P/CF has been as high as 26.28 and as low as 7.22, with a median of 9.86.These figures are just a handful of the metrics value investors tend to look at, but they help show that ONESPAN is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSPN feels like a great value stock at the moment.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks