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Are Investors Undervaluing Tecnoglass (TGLS) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Tecnoglass (TGLS). TGLS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.31, which compares to its industry's average of 21.96. Over the last 12 months, TGLS's Forward P/E has been as high as 11.15 and as low as 2.86, with a median of 8.97.

Finally, investors will want to recognize that TGLS has a P/CF ratio of 8.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.41. TGLS's P/CF has been as high as 12.73 and as low as 2.23, with a median of 8.55, all within the past year.

These are only a few of the key metrics included in Tecnoglass'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, TGLS looks like an impressive value stock at the moment.


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