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Should Value Investors Buy Covenant Logistics (CVLG) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Covenant Logistics (CVLG - Free Report) . CVLG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.29. This compares to its industry's average Forward P/E of 20.93. Over the past 52 weeks, CVLG's Forward P/E has been as high as 25.57 and as low as 6.73, with a median of 9.62.

Finally, our model also underscores that CVLG has a P/CF ratio of 4.92. 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. CVLG's current P/CF looks attractive when compared to its industry's average P/CF of 15.03. CVLG's P/CF has been as high as 15.82 and as low as 4.31, with a median of 6.67, all within the past year.

These are only a few of the key metrics included in Covenant Logistics'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, CVLG looks like an impressive value stock at the moment.

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