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Is Vista Outdoor (VSTO) a Great Value Stock 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, 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.

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 stock to keep an eye on is Vista Outdoor (VSTO - Free Report) . VSTO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.34 right now. For comparison, its industry sports an average P/E of 29.13. VSTO's Forward P/E has been as high as 47.08 and as low as 7.87, with a median of 11.76, all within the past year.

We should also highlight that VSTO has a P/B ratio of 2.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. VSTO's current P/B looks attractive when compared to its industry's average P/B of 6.79. Over the past 12 months, VSTO's P/B has been as high as 3.21 and as low as 0.98, with a median of 2.29.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VSTO has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.04.

These are only a few of the key metrics included in Vista Outdoor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VSTO looks like an impressive value stock at the moment.


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