Should Value Investors Buy iQIYI (IQ) Stock?

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with a focus on value investing as a preferred strategy in various market conditions [1] - Value investors utilize fundamental analysis and traditional valuation metrics to identify undervalued stocks [1] - The Style Scores system, particularly the "Value" category, helps investors find stocks with high value grades and strong Zacks Ranks [1] Company Analysis: iQIYI (IQ) - iQIYI currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong investment potential [2] - The company's P/B ratio is 2, which is favorable compared to the industry average P/B of 3; IQ's P/B has fluctuated between 1.74 and 7.92 over the past 52 weeks, with a median of 2.97 [2] - iQIYI's P/S ratio is 0.75, significantly lower than the industry's average P/S of 1.12, suggesting it may be undervalued [2] - The P/CF ratio for iQIYI is 6.73, which is considerably lower than the industry average of 17; this ratio has ranged from 2.82 to 10.13 in the past 12 months, with a median of 5.02 [3] - Overall, the metrics indicate that iQIYI is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [3]