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Are Investors Undervaluing Fluent (FLNT) 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Fluent (FLNT - Free Report) . FLNT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

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. FLNT has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.8.

Finally, investors will want to recognize that FLNT has a P/CF ratio of 7.80. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.98. Over the past 52 weeks, FLNT's P/CF has been as high as 59.65 and as low as 4.70, with a median of 11.

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


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