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Is Patrick Industries (PATK) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Patrick Industries (PATK - Free Report) is a stock many investors are watching right now. PATK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.44 right now. For comparison, its industry sports an average P/E of 7.31. PATK's Forward P/E has been as high as 9.40 and as low as 4.31, with a median of 6.24, all within the past year.
Investors should also note that PATK holds a PEG ratio of 0.52. 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. Over the last 12 months, PATK's PEG has been as high as 1.18 and as low as 0.52, with a median of 0.77.
Another valuation metric that we should highlight is PATK's P/B ratio of 1.34. 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 solid versus its industry's average P/B of 1.79. Over the past year, PATK's P/B has been as high as 3.10 and as low as 1.32, with a median of 2.06.
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. PATK has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.37.
Finally, we should also recognize that PATK has a P/CF ratio of 2.73. 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 4.61. Over the past year, PATK's P/CF has been as high as 7.15 and as low as 2.69, with a median of 4.60.
These are only a few of the key metrics included in Patrick Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PATK looks like an impressive value stock at the moment.
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Is Patrick Industries (PATK) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Patrick Industries (PATK - Free Report) is a stock many investors are watching right now. PATK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.44 right now. For comparison, its industry sports an average P/E of 7.31. PATK's Forward P/E has been as high as 9.40 and as low as 4.31, with a median of 6.24, all within the past year.
Investors should also note that PATK holds a PEG ratio of 0.52. 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. Over the last 12 months, PATK's PEG has been as high as 1.18 and as low as 0.52, with a median of 0.77.
Another valuation metric that we should highlight is PATK's P/B ratio of 1.34. 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 solid versus its industry's average P/B of 1.79. Over the past year, PATK's P/B has been as high as 3.10 and as low as 1.32, with a median of 2.06.
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. PATK has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.37.
Finally, we should also recognize that PATK has a P/CF ratio of 2.73. 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 4.61. Over the past year, PATK's P/CF has been as high as 7.15 and as low as 2.69, with a median of 4.60.
These are only a few of the key metrics included in Patrick Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PATK looks like an impressive value stock at the moment.