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Should Value Investors Buy Limbach (LMB) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Limbach (LMB - Free Report) . LMB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LMB has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.31.

Finally, we should also recognize that LMB has a P/CF ratio of 9.03. 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. LMB's P/CF compares to its industry's average P/CF of 35.06. Over the past 52 weeks, LMB's P/CF has been as high as 11.72 and as low as 5.58, with a median of 8.06.

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


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