The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Echo Global Logistics . ECHO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 22.03, which compares to its industry's average of 29.47. Over the past 52 weeks, ECHO's Forward P/E has been as high as 25.44 and as low as 11.84, with a median of 14.61.
Investors will also notice that ECHO has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ECHO's industry currently sports an average PEG of 2.50. Within the past year, ECHO's PEG has been as high as 1.41 and as low as 0.68, with a median of 0.83.
Investors should also recognize that ECHO has a P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. ECHO's P/B has been as high as 1.92 and as low as 1.05, with a median of 1.48, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ECHO has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.86.
Finally, investors should note that ECHO has a P/CF ratio of 16.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ECHO's P/CF compares to its industry's average P/CF of 20.68. Over the past year, ECHO's P/CF has been as high as 16.55 and as low as 7.39, with a median of 9.95.
These are just a handful of the figures considered in Echo Global Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ECHO is an impressive value stock right now.
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Are Investors Undervaluing Echo Global Logistics (ECHO) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Echo Global Logistics . ECHO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 22.03, which compares to its industry's average of 29.47. Over the past 52 weeks, ECHO's Forward P/E has been as high as 25.44 and as low as 11.84, with a median of 14.61.
Investors will also notice that ECHO has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ECHO's industry currently sports an average PEG of 2.50. Within the past year, ECHO's PEG has been as high as 1.41 and as low as 0.68, with a median of 0.83.
Investors should also recognize that ECHO has a P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. ECHO's P/B has been as high as 1.92 and as low as 1.05, with a median of 1.48, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ECHO has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.86.
Finally, investors should note that ECHO has a P/CF ratio of 16.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ECHO's P/CF compares to its industry's average P/CF of 20.68. Over the past year, ECHO's P/CF has been as high as 16.55 and as low as 7.39, with a median of 9.95.
These are just a handful of the figures considered in Echo Global Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ECHO is an impressive value stock right now.