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Is Unifi (UFI) Stock Undervalued 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 Unifi (UFI - Free Report) . UFI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 15.26, while its industry has an average P/E of 23.07. Over the past year, UFI's Forward P/E has been as high as 55.51 and as low as 14.76, with a median of 24.26.

Another valuation metric that we should highlight is UFI's P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.54. Over the past 12 months, UFI's P/B has been as high as 1.68 and as low as 0.87, with a median of 1.23.

Finally, we should also recognize that UFI has a P/CF ratio of 7.25. 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. UFI's current P/CF looks attractive when compared to its industry's average P/CF of 13.73. Within the past 12 months, UFI's P/CF has been as high as 26.97 and as low as -21.74, with a median of 7.53.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Unifi is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UFI feels like a great value stock at the moment.


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