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Should Value Investors Buy Tecnoglass (TGLS) Stock?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Tecnoglass (TGLS) is a stock many investors are watching right now. TGLS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 21.77. TGLS's Forward P/E has been as high as 11.15 and as low as 2.86, with a median of 8.97, all within the past year.

Finally, investors will want to recognize that TGLS has a P/CF ratio of 8.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.41. Within the past 12 months, TGLS's P/CF has been as high as 12.73 and as low as 2.23, with a median of 8.62.

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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