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Should Value Investors Buy Limbach (LMB) Stock?

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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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Limbach (LMB - Free Report) is a stock many investors are watching right now. LMB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 25.54, which compares to its industry's average of 34.66. Over the past year, LMB's Forward P/E has been as high as 28.03 and as low as 14.63, with a median of 21.03.

Investors should also note that LMB holds a PEG ratio of 2.13. 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. LMB's PEG compares to its industry's average PEG of 2.67. Over the past 52 weeks, LMB's PEG has been as high as 2.34 and as low as 1.22, with a median of 1.75.

Finally, investors should note that LMB has a P/CF ratio of 17.75. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 38.60. Over the past year, LMB's P/CF has been as high as 21.16 and as low as 10.55, with a median of 15.46.

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


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