Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

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6 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 6 undervalued stocks in the Electronic Equipment, Instruments & Components industry for Thursday, November 21, 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.

Ingram Micro Holding Corporation’s Value Grade

Value Grade:

Ingram Micro Holding Corporation, through its subsidiaries, engages in the provision of technology services and solutions to vendor, reseller, and retailer partners in North America, Europe, the Middle East, Africa, the Asia-Pacific, Latin America, and internationally. The company provides Ingram Micro Cloud Marketplace service portfolio that consists of third-party cloud-based services or subscription offerings through its Ingram Micro Xvantage platform, as well as offers training, ITAD, reverse logistics, repair and other related solutions, and financial solutions. It also provides client and endpoint solutions, including desktop personal computers, notebooks, tablets, printers, application software, peripherals, accessories, and Ingram Micro branded solutions, as well as components comprising hard drives, motherboards, video cards, etc. for corporate and individual end users. In addition, the company offers enterprise grade hardware and software products, such as servers, storage, networking, infrastructure hardware and software, and hybrid and software-defined solutions, as well as cybersecurity, power and cooling, and virtualization solutions; and DC/POS, physical security, audio visual and digital signage, UCC and telephony, smart office/home automation, and artificial intelligence products. Further, it provides third-party cloud-based services and subscriptions, including business applications, security, communications and collaboration, cloud enablement solutions, and infrastructure-as-a-service solutions; and operates CloudBlue digital commerce platform that offers multi-channel and multi-tier catalog management, subscription management, billing, and orchestration solutions through a SaaS model. The company was founded in 1979 and is headquartered in Irvine, California.

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.

Ingram Micro Holding Corporation has a Value Score of 79, which is considered to be undervalued.

When you look at Ingram Micro Holding Corporation’s price-to-sales ratio at 0.10 compared to the industry median at 2.01, this company has a lower price relative to revenue compared to its peers. This could make Ingram Micro Holding Corporation’s stock more attractive for value investors.

Ingram Micro Holding Corporation’s price-earnings ratio is 15.30 compared to the industry median at 24.85. This means it has a lower share price relative to earnings compared to its peers. This could make Ingram Micro Holding Corporation more attractive for value investors.

Now, let’s assess Ingram Micro Holding Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 8.7, when compared to the industry median of 13.0, 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. Ingram Micro Holding Corporation’s shareholder yield is higher than its industry median ratio of (0.10%). 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. Ingram Micro Holding Corporation’s price-to-book ratio is lower than its industry median ratio of 2.05. This could make Ingram Micro Holding Corporation more attractive to investors looking for a new addition to their portfolio.

Micropac Industries, Inc.’s Value Grade

Value Grade:

Micropac Industries, Inc. designs, manufactures, and distributes various types of microelectronic circuits. The company’s products and technologies include custom design hybrid microelectronic circuits; solid state relays and power controllers; custom optoelectronic assemblies and components; optocouplers; light-emitting diodes; hall effect sensors; displays; power operational amplifiers; fiber optic components and assemblies; high temperature products; and radiation tolerant electronics. Its products are used as components and assemblies in a range of military, space, and industrial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature products. The company markets its products through a direct technical sales staff, independent representatives, and independent stocking distributors in the United States and Western Europe, primarily to original equipment manufacturers and contractors. Micropac Industries, Inc. was founded in 1963 and is based in Garland, Texas.

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.

Micropac Industries, Inc. has a Value Score of 81, which is considered to be undervalued.

Micropac Industries, Inc.’s price-earnings ratio is 10.4 compared to the industry median at 24.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Micropac Industries, Inc. more attractive for value investors.

Micropac Industries, Inc.’s price-to-book ratio is higher than its peers. This could make Micropac Industries, Inc. less attractive for value investors when compared to the industry median at 2.05.

You can read more about Micropac Industries, 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.

Insight Enterprises, Inc.’s Value Grade

Value Grade:

Insight Enterprises, Inc., together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making. It also provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services contracts; and cloud/software-as-a-service subscription products. In addition, the company designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. It serves construction, esports, financial services, health care and life sciences, manufacturing, retail and restaurant, service providers, small to medium business, and travel and tourism industries. Insight Enterprises, Inc., was founded in 1988 and is headquartered in Chandler, Arizona.

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.

Insight Enterprises, Inc. has a Value Score of 61, which is considered to be undervalued.

Insight Enterprises, Inc.’s price-earnings ratio is 18.9 compared to the industry median at 24.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Insight Enterprises, Inc. more attractive for value investors.

Insight Enterprises, Inc.’s price-to-book ratio is lower than its peers. This could make Insight Enterprises, Inc. more attractive for value investors when compared to the industry median at 2.05.

You can read more about Insight Enterprises, 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.

SmartRent, Inc.’s Value Grade

Value Grade:

SmartRent, Inc., an enterprise real estate technology company, provides management software and applications to rental property owners and operators, property managers, homebuilders, developers, and residents in the United States and internationally. Its smart building hardware and cloud-based software-as-a-service solutions are designed to enhance visibility and control their real estate assets while providing all-in-one home control offerings for residents. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, self-guided tours, parking management, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.

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.

SmartRent, Inc. has a Value Score of 77, which is considered to be undervalued.

SmartRent, Inc.’s price-to-book ratio is higher than its peers. This could make SmartRent, Inc. less attractive for value investors when compared to the industry median at 2.05.

You can read more about SmartRent, 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.

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 82, which is considered to be undervalued.

Surge Components, Inc.’s price-earnings ratio is 25.2 compared to the industry median at 24.9. 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 2.05.

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.

Taitron Components Incorporated’s Value Grade

Value Grade:

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.

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.

Taitron Components Incorporated has a Value Score of 68, which is considered to be undervalued.

Taitron Components Incorporated’s price-earnings ratio is 11.7 compared to the industry median at 24.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Taitron Components Incorporated more attractive for value investors.

Taitron Components Incorporated’s price-to-book ratio is higher than its peers. This could make Taitron Components Incorporated less attractive for value investors when compared to the industry median at 2.05.

You can read more about Taitron Components Incorporated’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 6 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.

• Ingram Micro Holding Corporation stock has a Value Grade of B.
• Micropac Industries, Inc. stock has a Value Grade of A.
• Insight Enterprises, Inc. stock has a Value Grade of B.
• SmartRent, Inc. stock has a Value Grade of B.
• Surge Components, Inc. stock has a Value Grade of A.
• Taitron Components Incorporated stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Electronic Equipment, Instruments & Components Stocks for Thursday, November 21
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Wednesday, November 20
• 6 Undervalued Electronic Equipment, Instruments & Components Stocks for Tuesday, November 19
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Monday, November 18

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