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Should Value Investors Buy Randstad Holding (RANJY) Stock?
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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.
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 company to watch right now is Randstad Holding (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.89. This compares to its industry's average Forward P/E of 10.44. Over the past 52 weeks, RANJY's Forward P/E has been as high as 14.28 and as low as 8.22, with a median of 10.91.
Investors should also recognize that RANJY has a P/B ratio of 1.68. Investors use the P/B ratio to look at a stock's market value versus 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 2.41. Within the past 52 weeks, RANJY's P/B has been as high as 2.49 and as low as 1.64, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RANJY has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.44.
Finally, our model also underscores that RANJY has a P/CF ratio of 5.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.64. Over the past 52 weeks, RANJY's P/CF has been as high as 13.12 and as low as 5.61, with a median of 7.52.
Another great Staffing Firms stock you could consider is RCM Technologies (RCMT - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
RCM Technologies also has a P/B ratio of 4.67 compared to its industry's price-to-book ratio of 2.41. Over the past year, its P/B ratio has been as high as 9.40, as low as 2.37, with a median of 3.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Randstad Holding and RCM Technologies are likely undervalued currently. And when considering the strength of its earnings outlook, RANJY and RCMT sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Randstad Holding (RANJY) Stock?
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.
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 company to watch right now is Randstad Holding (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.89. This compares to its industry's average Forward P/E of 10.44. Over the past 52 weeks, RANJY's Forward P/E has been as high as 14.28 and as low as 8.22, with a median of 10.91.
Investors should also recognize that RANJY has a P/B ratio of 1.68. Investors use the P/B ratio to look at a stock's market value versus 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 2.41. Within the past 52 weeks, RANJY's P/B has been as high as 2.49 and as low as 1.64, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RANJY has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.44.
Finally, our model also underscores that RANJY has a P/CF ratio of 5.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.64. Over the past 52 weeks, RANJY's P/CF has been as high as 13.12 and as low as 5.61, with a median of 7.52.
Another great Staffing Firms stock you could consider is RCM Technologies (RCMT - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
RCM Technologies also has a P/B ratio of 4.67 compared to its industry's price-to-book ratio of 2.41. Over the past year, its P/B ratio has been as high as 9.40, as low as 2.37, with a median of 3.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Randstad Holding and RCM Technologies are likely undervalued currently. And when considering the strength of its earnings outlook, RANJY and RCMT sticks out as one of the market's strongest value stocks.