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Is Luxfer (LXFR) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Luxfer (LXFR - Free Report) . LXFR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.95, while its industry has an average P/E of 22.07. Over the past year, LXFR's Forward P/E has been as high as 26.15 and as low as 9.36, with a median of 12.67.

Investors will also notice that LXFR has a PEG ratio of 1.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LXFR's PEG compares to its industry's average PEG of 2.24. Over the past 52 weeks, LXFR's PEG has been as high as 3.74 and as low as 1.70, with a median of 2.67.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LXFR has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.71.

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


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