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Is Covenant Logistics (CVLG) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Covenant Logistics (CVLG - Free Report) . CVLG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.75, which compares to its industry's average of 24.39. Over the past year, CVLG's Forward P/E has been as high as 31.02 and as low as 5.66, with a median of 13.18.
Finally, we should also recognize that CVLG has a P/CF ratio of 4.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CVLG's current P/CF looks attractive when compared to its industry's average P/CF of 14.67. Within the past 12 months, CVLG's P/CF has been as high as 6.78 and as low as 1.48, with a median of 2.82.
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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Is Covenant Logistics (CVLG) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Covenant Logistics (CVLG - Free Report) . CVLG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.75, which compares to its industry's average of 24.39. Over the past year, CVLG's Forward P/E has been as high as 31.02 and as low as 5.66, with a median of 13.18.
Finally, we should also recognize that CVLG has a P/CF ratio of 4.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CVLG's current P/CF looks attractive when compared to its industry's average P/CF of 14.67. Within the past 12 months, CVLG's P/CF has been as high as 6.78 and as low as 1.48, with a median of 2.82.
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.