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Are Investors Undervaluing Williams Industrial Services (WLMS) 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 Williams Industrial Services . WLMS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that WLMS holds a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WLMS's PEG compares to its industry's average PEG of 1.10. Within the past year, WLMS's PEG has been as high as 1.19 and as low as 0.34, with a median of 0.47.

Finally, we should also recognize that WLMS has a P/CF ratio of 7.06. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. WLMS's current P/CF looks attractive when compared to its industry's average P/CF of 15.55. Over the past year, WLMS's P/CF has been as high as 14.17 and as low as -4.71, with a median of -1.78.

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

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