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Is Patrick Industries (PATK) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Patrick Industries (PATK - Free Report) . PATK 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 5.25, which compares to its industry's average of 8.64. PATK's Forward P/E has been as high as 9.40 and as low as 4.31, with a median of 6.45, all within the past year.
We also note that PATK holds a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PATK's PEG compares to its industry's average PEG of 1.01. PATK's PEG has been as high as 1.18 and as low as 0.56, with a median of 0.80, all within the past year.
We should also highlight that PATK has a P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. PATK's current P/B looks attractive when compared to its industry's average P/B of 2.14. Over the past 12 months, PATK's P/B has been as high as 3.18 and as low as 1.32, with a median of 2.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PATK has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.45.
Finally, investors should note that PATK has a P/CF ratio of 3.25. 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 5.53. Over the past 52 weeks, PATK's P/CF has been as high as 7.32 and as low as 2.69, with a median of 4.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Patrick Industries is likely undervalued currently. And when considering the strength of its earnings outlook, PATK sticks out at as one of the market's strongest value stocks.
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Is Patrick Industries (PATK) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Patrick Industries (PATK - Free Report) . PATK 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 5.25, which compares to its industry's average of 8.64. PATK's Forward P/E has been as high as 9.40 and as low as 4.31, with a median of 6.45, all within the past year.
We also note that PATK holds a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PATK's PEG compares to its industry's average PEG of 1.01. PATK's PEG has been as high as 1.18 and as low as 0.56, with a median of 0.80, all within the past year.
We should also highlight that PATK has a P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. PATK's current P/B looks attractive when compared to its industry's average P/B of 2.14. Over the past 12 months, PATK's P/B has been as high as 3.18 and as low as 1.32, with a median of 2.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PATK has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.45.
Finally, investors should note that PATK has a P/CF ratio of 3.25. 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 5.53. Over the past 52 weeks, PATK's P/CF has been as high as 7.32 and as low as 2.69, with a median of 4.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Patrick Industries is likely undervalued currently. And when considering the strength of its earnings outlook, PATK sticks out at as one of the market's strongest value stocks.