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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is
RCM Technologies (. RCMT 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 11.80, which compares to its industry's average of 12.60. Over the past year, RCMT's Forward P/E has been as high as 50.83 and as low as 10.84, with a median of 16.63. RCMT Quick Quote RCMT - Free Report)
Another valuation metric that we should highlight is RCMT's P/B ratio of 3.03. 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 attractive against its industry's average P/B of 3.44. Within the past 52 weeks, RCMT's P/B has been as high as 3.97 and as low as 0.79, with a median of 2.04.
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. RCMT has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that RCMT has a P/CF ratio of 14.44. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.27. Over the past 52 weeks, RCMT's P/CF has been as high as 53.88 and as low as -102.16, with a median of -3.13.
If you're looking for another solid Staffing Firms value stock, take a look at
SThree (. STREF is a # 2 (Buy) stock with a Value score of A. STREF Quick Quote STREF - Free Report)
Furthermore, SThree holds a P/B ratio of 2.37 and its industry's price-to-book ratio is 3.44. STREF's P/B has been as high as 2.69, as low as 2.37, with a median of 2.37 over the past 12 months.
These are just a handful of the figures considered in RCM Technologies and SThree's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCMT and STREF is an impressive value stock right now.