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Are Investors Undervaluing Patrick Industries (PATK) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Patrick Industries (PATK - Free Report) . PATK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.94 right now. For comparison, its industry sports an average P/E of 18.11. PATK's Forward P/E has been as high as 24.07 and as low as 4.43, with a median of 12.39, all within the past year.
Investors will also notice that PATK has a PEG ratio of 1.47. 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. PATK's industry currently sports an average PEG of 1.58. Over the past 52 weeks, PATK's PEG has been as high as 10.81 and as low as 0.64, with a median of 1.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PATK has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that PATK has a P/CF ratio of 10.46. 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. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 16.63. Over the past year, PATK's P/CF has been as high as 11.61 and as low as 2.83, with a median of 7.66.
Value investors will likely look at more than just these metrics, but the above data helps show that Patrick Industries is likely undervalued currently. And when considering the strength of its earnings outlook, PATK sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Patrick Industries (PATK) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Patrick Industries (PATK - Free Report) . PATK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.94 right now. For comparison, its industry sports an average P/E of 18.11. PATK's Forward P/E has been as high as 24.07 and as low as 4.43, with a median of 12.39, all within the past year.
Investors will also notice that PATK has a PEG ratio of 1.47. 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. PATK's industry currently sports an average PEG of 1.58. Over the past 52 weeks, PATK's PEG has been as high as 10.81 and as low as 0.64, with a median of 1.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PATK has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.41.
Finally, we should also recognize that PATK has a P/CF ratio of 10.46. 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. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 16.63. Over the past year, PATK's P/CF has been as high as 11.61 and as low as 2.83, with a median of 7.66.
Value investors will likely look at more than just these metrics, but the above data helps show that Patrick Industries is likely undervalued currently. And when considering the strength of its earnings outlook, PATK sticks out at as one of the market's strongest value stocks.