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Is Insteel Industries (IIIN) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Insteel Industries (IIIN - Free Report) is a stock many investors are watching right now. IIIN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is IIIN's P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IIIN's current P/B looks attractive when compared to its industry's average P/B of 2.76. Over the past 12 months, IIIN's P/B has been as high as 2.23 and as low as 1.38, with a median of 1.65.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IIIN has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.34.
Investors could also keep in mind Encore Wire (WIRE - Free Report) , an Wire and Cable Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Encore Wire sports a P/B ratio of 1.96 as well; this compares to its industry's price-to-book ratio of 2.76. In the past 52 weeks, WIRE's P/B has been as high as 2.20, as low as 1.41, with a median of 1.67.
These are just a handful of the figures considered in Insteel Industries and Encore Wire'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 IIIN and WIRE is an impressive value stock right now.
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Is Insteel Industries (IIIN) a Great Value Stock Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Insteel Industries (IIIN - Free Report) is a stock many investors are watching right now. IIIN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is IIIN's P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IIIN's current P/B looks attractive when compared to its industry's average P/B of 2.76. Over the past 12 months, IIIN's P/B has been as high as 2.23 and as low as 1.38, with a median of 1.65.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IIIN has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.34.
Investors could also keep in mind Encore Wire (WIRE - Free Report) , an Wire and Cable Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Encore Wire sports a P/B ratio of 1.96 as well; this compares to its industry's price-to-book ratio of 2.76. In the past 52 weeks, WIRE's P/B has been as high as 2.20, as low as 1.41, with a median of 1.67.
These are just a handful of the figures considered in Insteel Industries and Encore Wire'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 IIIN and WIRE is an impressive value stock right now.