Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Electronic Equipment, Instruments & Components industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electronic Equipment, Instruments & Components Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

4 Undervalued Electronic Equipment, Instruments & Components Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Electronic Equipment, Instruments & Components industry for Monday, November 11, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment, Instruments & Components industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Autoscope Technologies Corporation’s Value Grade

Value Grade:

Autoscope Technologies Corporation develops and markets video and radar processing products for use in intersection control, highway, bridge and tunnel traffic management, and traffic data collection applications in the Asia Pacific, Europe, the Middle East, and North America. It operates in two segments, Intersection and Highway. The company provides Autoscope video systems that process video input from a traffic scene in real time and extracts the traffic data, including vehicle presence, bicycle presence/differentiation, counts, speed, length, time occupancy, turning movements, and flow rate; and RTMS radar systems that use radar to measure vehicle presence, volume, occupancy, speed, and classification information for roadway monitoring applications. It also offers IntellitraffiQ software that provides traffic measurement and data collection across large and small areas. The company markets and sells its products to end users comprising federal, state, city, and county departments of transportation, port, highway, tunnel, and other transportation authorities, as well as system integrators or other suppliers of systems and services who are operating under subcontracts in connection with road construction contracts. Autoscope Technologies Corporation was founded in 1984 and is headquartered in Minneapolis, Minnesota.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Autoscope Technologies Corporation has a Value Score of 80, which is considered to be undervalued.

When you look at Autoscope Technologies Corporation’s price-to-sales ratio at 3.34 compared to the industry median at 2.14, this company has a higher price relative to revenue compared to its peers. This could make Autoscope Technologies Corporation’s stock less attractive for value investors.

Autoscope Technologies Corporation’s price-earnings ratio is 8.90 compared to the industry median at 26.30. This means it has a lower share price relative to earnings compared to its peers. This could make Autoscope Technologies Corporation more attractive for value investors.

Now, let’s assess Autoscope Technologies Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 5.0, when compared to the industry median of 12.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Autoscope Technologies Corporation’s shareholder yield is higher than its industry median ratio of (0.25%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Autoscope Technologies Corporation’s price-to-book ratio is lower than its industry median ratio of 2.12. This could make Autoscope Technologies Corporation more attractive to investors looking for a new addition to their portfolio.

Surge Components, Inc.’s Value Grade

Value Grade:

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Surge Components, Inc. has a Value Score of 80, which is considered to be undervalued.

Surge Components, Inc.’s price-earnings ratio is 27.6 compared to the industry median at 26.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Surge Components, Inc. less attractive for value investors.

Surge Components, Inc.’s price-to-book ratio is higher than its peers. This could make Surge Components, Inc. less attractive for value investors when compared to the industry median at 2.12.

You can read more about Surge Components, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Universal Security Instruments, Inc.’s Value Grade

Value Grade:

Universal Security Instruments, Inc., together with its subsidiary, engages in the marketing and distribution of safety and security products in the United States. The company offers a line of safety alarms units, including replaceable batteries, sealed batteries, and battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices under the UNIVERSAL and USI Electric trade names. It provides its products to wholesale distributors; chain, discount, television retailers; home center stores; catalog and mail order companies; electrical and lighting distributors, and manufactured housing companies; and other distributors. It also sells its products through independent sales organizations and sales representatives, as well as through its own sales catalogs and brochures, and website. Universal Security Instruments, Inc. was incorporated in 1969 and is headquartered in Owings Mills, Maryland.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Universal Security Instruments, Inc. has a Value Score of 83, which is considered to be undervalued.

Universal Security Instruments, Inc.’s price-to-book ratio is higher than its peers. This could make Universal Security Instruments, Inc. less attractive for value investors when compared to the industry median at 2.12.

You can read more about Universal Security Instruments, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Zepp Health Corporation’s Value Grade

Value Grade:

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Zepp Health Corporation has a Value Score of 71, which is considered to be undervalued.

Zepp Health Corporation’s price-to-book ratio is higher than its peers. This could make Zepp Health Corporation less attractive for value investors when compared to the industry median at 2.12.

You can read more about Zepp Health Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electronic Equipment, Instruments & Components Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electronic Equipment, Instruments & Components stocks as well as other industrys.

Choosing Which of the 4 Best Electronic Equipment, Instruments & Components Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Autoscope Technologies Corporation stock has a Value Grade of B.
• Surge Components, Inc. stock has a Value Grade of B.
• Universal Security Instruments, Inc. stock has a Value Grade of A.
• Zepp Health Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Electronic Equipment, Instruments & Components industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electronic Equipment, Instruments & Components Stocks

Want to learn more about Electronic Equipment, Instruments & Components stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Electronic Equipment, Instruments & Components Stocks for Monday, November 11
• 3 Undervalued Electronic Equipment, Instruments & Components Stocks for Friday, November 08
• 7 Undervalued Electronic Equipment, Instruments & Components Stocks for Thursday, November 07
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Wednesday, November 06

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.