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Are Investors Undervaluing Oxford Square Capital (OXSQ) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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.

Oxford Square Capital (OXSQ - Free Report) is a stock many investors are watching right now. OXSQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.21 right now. For comparison, its industry sports an average P/E of 10.76. Over the last 12 months, OXSQ's Forward P/E has been as high as 11.29 and as low as 8.64, with a median of 10.26.

We also note that OXSQ holds a PEG ratio of 2.23. 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. OXSQ's industry currently sports an average PEG of 3.41. Within the past year, OXSQ's PEG has been as high as 2.24 and as low as 1.73, with a median of 2.01.

Finally, investors will want to recognize that OXSQ has a P/CF ratio of 9.03. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OXSQ's P/CF compares to its industry's average P/CF of 9.89. Over the past year, OXSQ's P/CF has been as high as 9.45 and as low as 3.84, with a median of 7.21.

These are just a handful of the figures considered in Oxford Square Capital'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 OXSQ is an impressive value stock right now.


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