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Is ARC Document Solutions (ARC) a Great Value Stock Right Now?

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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, 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.

ARC Document Solutions (ARC - Free Report) is a stock many investors are watching right now. ARC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.34 right now. For comparison, its industry sports an average P/E of 17.01. Over the past year, ARC's Forward P/E has been as high as 27.51 and as low as 14.97, with a median of 19.82.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARC has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.55.

Finally, our model also underscores that ARC has a P/CF ratio of 2.70. 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. ARC's current P/CF looks attractive when compared to its industry's average P/CF of 7.68. Within the past 12 months, ARC's P/CF has been as high as 5.44 and as low as 2.19, with a median of 3.55.

These are just a handful of the figures considered in ARC Document Solutions'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 ARC is an impressive value stock right now.


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