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Is RTI Surgical (RTIX) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

RTI Surgical is a stock many investors are watching right now. RTIX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 26.45. This compares to its industry's average Forward P/E of 34.50. RTIX's Forward P/E has been as high as 79.06 and as low as 26.22, with a median of 37.41, all within the past year.

Investors should also note that RTIX holds a PEG ratio of 1.86. 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. RTIX's industry currently sports an average PEG of 2.58. Over the last 12 months, RTIX's PEG has been as high as 5.27 and as low as 1.77, with a median of 2.50.

Finally, our model also underscores that RTIX has a P/CF ratio of 21.70. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 41.30. Within the past 12 months, RTIX's P/CF has been as high as 30.79 and as low as -34.87, with a median of 18.85.

These are just a handful of the figures considered in RTI Surgical'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 RTIX is an impressive value stock right now.