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Is Gibraltar Industries (ROCK) 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.

Gibraltar Industries (ROCK - Free Report) is a stock many investors are watching right now. ROCK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.06, which compares to its industry's average of 13.12. Over the past 52 weeks, ROCK's Forward P/E has been as high as 15.88 and as low as 10.48, with a median of 12.84.

We should also highlight that ROCK has a P/B ratio of 1.85. 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 3.34. Within the past 52 weeks, ROCK's P/B has been as high as 2.16 and as low as 1.45, with a median of 1.77.

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. ROCK has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.18.

Finally, we should also recognize that ROCK has a P/CF ratio of 14.19. 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 15.75. Within the past 12 months, ROCK's P/CF has been as high as 16.50 and as low as 10.99, with a median of 13.26.

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


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