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Should Value Investors Buy Covenant Logistics (CVLG) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Covenant Logistics (CVLG - Free Report) is a stock many investors are watching right now. CVLG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.14, while its industry has an average P/E of 24.97. Over the last 12 months, CVLG's Forward P/E has been as high as 31.02 and as low as 5.66, with a median of 13.07.
Finally, investors will want to recognize that CVLG has a P/CF ratio of 5.88. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.67. Over the past year, CVLG's P/CF has been as high as 6.78 and as low as 1.48, with a median of 2.77.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics is likely undervalued currently. And when considering the strength of its earnings outlook, CVLG sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Covenant Logistics (CVLG) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Covenant Logistics (CVLG - Free Report) is a stock many investors are watching right now. CVLG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.14, while its industry has an average P/E of 24.97. Over the last 12 months, CVLG's Forward P/E has been as high as 31.02 and as low as 5.66, with a median of 13.07.
Finally, investors will want to recognize that CVLG has a P/CF ratio of 5.88. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.67. Over the past year, CVLG's P/CF has been as high as 6.78 and as low as 1.48, with a median of 2.77.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics is likely undervalued currently. And when considering the strength of its earnings outlook, CVLG sticks out at as one of the market's strongest value stocks.