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Are Investors Undervaluing REMAX (RMAX) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is REMAX (RMAX - Free Report) . RMAX 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 9.53 right now. For comparison, its industry sports an average P/E of 17.41. Over the last 12 months, RMAX's Forward P/E has been as high as 13.08 and as low as 7.23, with a median of 10.44.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RMAX has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.38.

Finally, investors should note that RMAX has a P/CF ratio of 6.66. 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 7.16. Over the past 52 weeks, RMAX's P/CF has been as high as 16.89 and as low as 6.26, with a median of 7.56.

Value investors will likely look at more than just these metrics, but the above data helps show that REMAX is likely undervalued currently. And when considering the strength of its earnings outlook, RMAX sticks out at as one of the market's strongest value stocks.


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