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 Monday, November 25, 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.

Avnet, Inc.’s Value Grade

Value Grade:

Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support, warehousing, and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions, as well as embedded display solutions comprising touch and passive displays; and develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, 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.

Avnet, Inc. has a Value Score of 94, which is considered to be undervalued.

When you look at Avnet, Inc.’s price-to-sales ratio at 0.21 compared to the industry median at 2.02, this company has a lower price relative to revenue compared to its peers. This could make Avnet, Inc.’s stock more attractive for value investors.

Avnet, Inc.’s price-earnings ratio is 14.20 compared to the industry median at 26.20. This means it has a lower share price relative to earnings compared to its peers. This could make Avnet, Inc. more attractive for value investors.

Now, let’s assess Avnet, Inc.’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. Avnet, Inc.’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. Avnet, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.15. This could make Avnet, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Avnet, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Avnet, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.65. This could make Avnet, Inc. more attractive because the lower P/FCF ratio indicates that Avnet, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

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 62, which is considered to be undervalued.

Insight Enterprises, Inc.’s price-earnings ratio is 19.0 compared to the industry median at 26.2. 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 2.15.

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.

TD SYNNEX Corporation’s Value Grade

Value Grade:

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, 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.

TD SYNNEX Corporation has a Value Score of 89, which is considered to be undervalued.

TD SYNNEX Corporation’s price-earnings ratio is 15.4 compared to the industry median at 26.2. This means that it has a lower price relative to its earnings compared to its peers. This makes TD SYNNEX Corporation more attractive for value investors.

TD SYNNEX Corporation’s price-to-book ratio is higher than its peers. This could make TD SYNNEX Corporation less attractive for value investors when compared to the industry median at 2.15.

You can read more about TD SYNNEX 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.

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 71, which is considered to be undervalued.

Taitron Components Incorporated’s price-earnings ratio is 11.5 compared to the industry median at 26.2. 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 2.15.

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.

VerifyMe, Inc.’s Value Grade

Value Grade:

VerifyMe, Inc., together with its subsidiaries, provides traceability and customer support services through software and process technology. The company operates through two segments, Precision Logistics and Authentication. The Precision Logistics segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment provides PeriTrack customer dashboard, an integrated web portal tool that gives its customers an in-depth look at their shipping activities based on real-time data. It also offers service center, pre-transit, post-delivery, and weather/traffic services. The Authentication segment provides technology solutions to connect brands with consumers through its products, as well as brand protection and supply chain functions, such as counterfeit prevention. This segment offers VerifyMe Engage, which allows the brand owners to gather business intelligence and engage with customers; VerifyMe Authenticate for authentication of labels, packaging, and products; and VerifyMe Track & Trace for unit level traceability and supply chain control. The company has a strategic partnership with INX International Ink Co. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

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.

VerifyMe, Inc. has a Value Score of 86, which is considered to be undervalued.

VerifyMe, Inc.’s price-to-book ratio is higher than its peers. This could make VerifyMe, Inc. less attractive for value investors when compared to the industry median at 2.15.

You can read more about VerifyMe, 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.

Wetouch Technology Inc.’s Value Grade

Value Grade:

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, 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.

Wetouch Technology Inc. has a Value Score of 72, which is considered to be undervalued.

Wetouch Technology Inc.’s price-earnings ratio is 5.2 compared to the industry median at 26.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Wetouch Technology Inc. more attractive for value investors.

Wetouch Technology Inc.’s price-to-book ratio is higher than its peers. This could make Wetouch Technology Inc. less attractive for value investors when compared to the industry median at 2.15.

You can read more about Wetouch Technology 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.

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.

• Avnet, Inc. stock has a Value Grade of A.
• Insight Enterprises, Inc. stock has a Value Grade of B.
• TD SYNNEX Corporation stock has a Value Grade of A.
• Taitron Components Incorporated stock has a Value Grade of B.
• VerifyMe, Inc. stock has a Value Grade of A.
• Wetouch Technology Inc. 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 Monday, November 25
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Friday, November 22
• 6 Undervalued Electronic Equipment, Instruments & Components Stocks for Thursday, November 21
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Wednesday, November 20

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