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Are Investors Undervaluing PC Connection (CNXN) Right Now?
PC nectionPC nection(US:CNXN) ZACKSยท2024-08-19 14:45

Core Viewpoint - The article emphasizes the importance of value investing and highlights PC Connection (CNXN) as a strong value stock based on various valuation metrics [1][2][8]. Valuation Metrics - PC Connection (CNXN) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio for CNXN is 18.15, which is slightly lower than the industry average of 18.27. Over the past year, CNXN's Forward P/E has ranged from 15.13 to 21.07, with a median of 18.13 [4]. - CNXN's PEG ratio stands at 1.82, comparable to the industry average of 1.83. The PEG ratio has fluctuated between 1.52 and 2.11 over the last 12 months, with a median of 1.84 [5]. - The P/B ratio for CNXN is 2.06, which is attractive compared to the industry's average P/B of 2.07. The P/B ratio has varied from 1.68 to 2.26 in the past year, with a median of 2 [6]. - CNXN's P/CF ratio is 19.17, which is solid against the industry average of 19.31. This ratio has ranged from 15.24 to 21.04 over the past 52 weeks, with a median of 18.29 [7]. Investment Outlook - The combination of these valuation metrics suggests that PC Connection is likely undervalued, making it one of the strongest value stocks in the market, especially considering its earnings outlook [8].