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Is ARC Document Solutions (ARC) a Great Value Stock 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.
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.
One company to watch right now is ARC Document Solutions (ARC - Free Report) . ARC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 12.87, which compares to its industry's average of 15.02. Over the last 12 months, ARC's Forward P/E has been as high as 25.29 and as low as 12.70, with a median of 19.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARC has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.51.
Finally, our model also underscores that ARC has a P/CF ratio of 2.27. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.03. ARC's P/CF has been as high as 5.44 and as low as 2.19, with a median of 3.42, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ARC Document Solutions is likely undervalued currently. And when considering the strength of its earnings outlook, ARC sticks out at as one of the market's strongest value stocks.
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Is ARC Document Solutions (ARC) a Great Value Stock Right Now?
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.
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.
One company to watch right now is ARC Document Solutions (ARC - Free Report) . ARC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 12.87, which compares to its industry's average of 15.02. Over the last 12 months, ARC's Forward P/E has been as high as 25.29 and as low as 12.70, with a median of 19.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARC has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.51.
Finally, our model also underscores that ARC has a P/CF ratio of 2.27. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.03. ARC's P/CF has been as high as 5.44 and as low as 2.19, with a median of 3.42, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ARC Document Solutions is likely undervalued currently. And when considering the strength of its earnings outlook, ARC sticks out at as one of the market's strongest value stocks.