Back to top

Image: Bigstock

Is Gibraltar Industries (ROCK) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

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 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.

Gibraltar Industries (ROCK - Free Report) is a stock many investors are watching right now. ROCK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.11, which compares to its industry's average of 13.12. Over the last 12 months, ROCK's Forward P/E has been as high as 22.49 and as low as 10.78, with a median of 13.93.

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. ROCK has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.2.

Finally, investors should note that ROCK has a P/CF ratio of 13.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ROCK's current P/CF looks attractive when compared to its industry's average P/CF of 15.67. Within the past 12 months, ROCK's P/CF has been as high as 30.49 and as low as 11.32, with a median of 15.67.

Value investors will likely look at more than just these metrics, but the above data helps show that Gibraltar Industries is likely undervalued currently. And when considering the strength of its earnings outlook, ROCK sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gibraltar Industries, Inc. (ROCK) - free report >>

Published in