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Should Value Investors Buy Flexible Solutions International (FSI) Stock?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Flexible Solutions International (FSI - Free Report) . FSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.43, which compares to its industry's average of 14.92. Over the past 52 weeks, FSI's Forward P/E has been as high as 11.91 and as low as 3.65, with a median of 6.46.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSI has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.32.

Finally, investors will want to recognize that FSI has a P/CF ratio of 7.11. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.10. Over the past 52 weeks, FSI's P/CF has been as high as 11.68 and as low as 3.80, with a median of 7.39.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Flexible Solutions International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSI feels like a great value stock at the moment.


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