Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Echo Global Logistics . ECHO 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 22.12, while its industry has an average P/E of 30.49. Over the past 52 weeks, ECHO's Forward P/E has been as high as 25.44 and as low as 11.15, with a median of 14.47.
Investors will also notice that ECHO has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ECHO's industry has an average PEG of 2.59 right now. Over the last 12 months, ECHO's PEG has been as high as 1.41 and as low as 0.64, with a median of 0.83.
Another valuation metric that we should highlight is ECHO's P/B ratio of 1.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. Over the past 12 months, ECHO's P/B has been as high as 1.88 and as low as 1.05, with a median of 1.47.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ECHO has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.91.
Finally, our model also underscores that ECHO has a P/CF ratio of 15.63. 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. ECHO's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. Within the past 12 months, ECHO's P/CF has been as high as 16.26 and as low as 7.39, with a median of 9.84.
These are just a handful of the figures considered in Echo Global Logistics'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 ECHO is an impressive value stock right now.
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Is Echo Global Logistics (ECHO) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Echo Global Logistics . ECHO 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 22.12, while its industry has an average P/E of 30.49. Over the past 52 weeks, ECHO's Forward P/E has been as high as 25.44 and as low as 11.15, with a median of 14.47.
Investors will also notice that ECHO has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ECHO's industry has an average PEG of 2.59 right now. Over the last 12 months, ECHO's PEG has been as high as 1.41 and as low as 0.64, with a median of 0.83.
Another valuation metric that we should highlight is ECHO's P/B ratio of 1.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. Over the past 12 months, ECHO's P/B has been as high as 1.88 and as low as 1.05, with a median of 1.47.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ECHO has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.91.
Finally, our model also underscores that ECHO has a P/CF ratio of 15.63. 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. ECHO's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. Within the past 12 months, ECHO's P/CF has been as high as 16.26 and as low as 7.39, with a median of 9.84.
These are just a handful of the figures considered in Echo Global Logistics'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 ECHO is an impressive value stock right now.