Are Investors Undervaluing Issuer Direct (ISDR) Right Now?

Zacks
23 Aug 2024

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Issuer Direct (ISDR). ISDR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.40 right now. For comparison, its industry sports an average P/E of 24.67. ISDR's Forward P/E has been as high as 16.76 and as low as 8.52, with a median of 12.19, all within the past year.

We should also highlight that ISDR has a P/B ratio of 0.97. 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. This stock's P/B looks solid versus its industry's average P/B of 1.08. Within the past 52 weeks, ISDR's P/B has been as high as 2.32 and as low as 0.83, with a median of 1.61.

Finally, investors should note that ISDR has a P/CF ratio of 14.09. 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 22.16. ISDR's P/CF has been as high as 20.57 and as low as 7.73, with a median of 14.34, all within the past year.

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

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