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Is LCI Industries (LCII) 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.
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 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.
LCI Industries (LCII - Free Report) is a stock many investors are watching right now. LCII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.11. This compares to its industry's average Forward P/E of 20.91. Over the last 12 months, LCII's Forward P/E has been as high as 14.53 and as low as 6.13, with a median of 10.06.
We should also highlight that LCII has a P/B ratio of 2.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LCII's current P/B looks attractive when compared to its industry's average P/B of 3.44. Over the past year, LCII's P/B has been as high as 3.96 and as low as 1.96, with a median of 2.96.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCII has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.74.
Finally, our model also underscores that LCII has a P/CF ratio of 6.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.34. Within the past 12 months, LCII's P/CF has been as high as 11.43 and as low as 4.68, with a median of 8.19.
Value investors will likely look at more than just these metrics, but the above data helps show that LCI Industries is likely undervalued currently. And when considering the strength of its earnings outlook, LCII sticks out at as one of the market's strongest value stocks.
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Is LCI Industries (LCII) Stock Undervalued Right Now?
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 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.
LCI Industries (LCII - Free Report) is a stock many investors are watching right now. LCII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.11. This compares to its industry's average Forward P/E of 20.91. Over the last 12 months, LCII's Forward P/E has been as high as 14.53 and as low as 6.13, with a median of 10.06.
We should also highlight that LCII has a P/B ratio of 2.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LCII's current P/B looks attractive when compared to its industry's average P/B of 3.44. Over the past year, LCII's P/B has been as high as 3.96 and as low as 1.96, with a median of 2.96.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCII has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.74.
Finally, our model also underscores that LCII has a P/CF ratio of 6.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.34. Within the past 12 months, LCII's P/CF has been as high as 11.43 and as low as 4.68, with a median of 8.19.
Value investors will likely look at more than just these metrics, but the above data helps show that LCI Industries is likely undervalued currently. And when considering the strength of its earnings outlook, LCII sticks out at as one of the market's strongest value stocks.