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Should Value Investors Buy Radiant Logistics (RLGT) Stock?

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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.

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

One company value investors might notice is Radiant Logistics (RLGT - Free Report) . RLGT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.02, while its industry has an average P/E of 12.42. RLGT's Forward P/E has been as high as 16.64 and as low as 8.94, with a median of 11.81, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RLGT has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.45.

Finally, investors should note that RLGT has a P/CF ratio of 10.26. 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. RLGT's current P/CF looks attractive when compared to its industry's average P/CF of 10.85. Over the past 52 weeks, RLGT's P/CF has been as high as 12.04 and as low as 7.14, with a median of 9.92.

Value investors will likely look at more than just these metrics, but the above data helps show that Radiant Logistics is likely undervalued currently. And when considering the strength of its earnings outlook, RLGT sticks out at as one of the market's strongest value stocks.


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