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Are Investors Undervaluing Patrick Industries (PATK) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Patrick Industries (PATK - Free Report) . PATK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.46, which compares to its industry's average of 5.37. Over the past 52 weeks, PATK's Forward P/E has been as high as 11.55 and as low as 4.46, with a median of 8.22.
PATK is also sporting a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PATK's industry has an average PEG of 0.86 right now. PATK's PEG has been as high as 1.22 and as low as 0.71, with a median of 1.01, all within the past year.
We should also highlight that PATK has a P/B ratio of 1.57. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.77. PATK's P/B has been as high as 3.50 and as low as 1.57, with a median of 2.70, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PATK has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.82.
Finally, investors should note that PATK has a P/CF ratio of 3.32. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. Over the past year, PATK's P/CF has been as high as 9.75 and as low as 3.32, with a median of 6.10.
These are just a handful of the figures considered in Patrick Industries'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 PATK is an impressive value stock right now.
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Are Investors Undervaluing Patrick Industries (PATK) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Patrick Industries (PATK - Free Report) . PATK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.46, which compares to its industry's average of 5.37. Over the past 52 weeks, PATK's Forward P/E has been as high as 11.55 and as low as 4.46, with a median of 8.22.
PATK is also sporting a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PATK's industry has an average PEG of 0.86 right now. PATK's PEG has been as high as 1.22 and as low as 0.71, with a median of 1.01, all within the past year.
We should also highlight that PATK has a P/B ratio of 1.57. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.77. PATK's P/B has been as high as 3.50 and as low as 1.57, with a median of 2.70, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PATK has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.82.
Finally, investors should note that PATK has a P/CF ratio of 3.32. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. Over the past year, PATK's P/CF has been as high as 9.75 and as low as 3.32, with a median of 6.10.
These are just a handful of the figures considered in Patrick Industries'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 PATK is an impressive value stock right now.