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Are Investors Undervaluing Gibraltar Industries (ROCK) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Gibraltar Industries (ROCK - Free Report) . ROCK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that ROCK has a P/B ratio of 2.28. 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 3.90. Over the past 12 months, ROCK's P/B has been as high as 2.73 and as low as 1.66, with a median of 2.01.

Finally, investors should note that ROCK has a P/CF ratio of 16.80. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.91. Over the past 52 weeks, ROCK's P/CF has been as high as 20.10 and as low as 12.18, with a median of 14.95.

These are just a handful of the figures considered in Gibraltar Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ROCK is an impressive value stock right now.


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