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Should Value Investors Buy Nautilus (NLS) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Nautilus . NLS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.09. This compares to its industry's average Forward P/E of 13.56. NLS's Forward P/E has been as high as 24.31 and as low as -2,058.68, with a median of 10.81, all within the past year.

Investors should also recognize that NLS has a P/B ratio of 2.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.17. Over the past 12 months, NLS's P/B has been as high as 6.75 and as low as 2.62, with a median of 4.01.

Finally, we should also recognize that NLS has a P/CF ratio of 4.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.65. Over the past year, NLS's P/CF has been as high as 247.10 and as low as 4.32, with a median of 9.13.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Nautilus is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NLS feels like a great value stock at the moment.

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