Back to top

Image: Bigstock

Are Investors Undervaluing Patrick Industries (PATK) Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Patrick Industries (PATK - Free Report) . PATK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.26, while its industry has an average P/E of 11.31. PATK's Forward P/E has been as high as 22.95 and as low as 11.26, with a median of 14.40, all within the past year.

Investors will also notice that PATK has a PEG ratio of 0.76. 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. PATK's PEG compares to its industry's average PEG of 0.92. PATK's PEG has been as high as 2 and as low as 0.76, with a median of 1.25, all within the past year.

Finally, our model also underscores that PATK has a P/CF ratio of 9.15. 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. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 15.93. Over the past 52 weeks, PATK's P/CF has been as high as 17.29 and as low as 8.74, with a median of 12.68.

These are only a few of the key metrics included in Patrick Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PATK looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Patrick Industries, Inc. (PATK) - free report >>