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Are Investors Undervaluing ICF International (ICFI) 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 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 company to watch right now is ICF International (ICFI - Free Report) . ICFI 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 22.30 right now. For comparison, its industry sports an average P/E of 22.58. Over the last 12 months, ICFI's Forward P/E has been as high as 22.67 and as low as 16.27, with a median of 18.68.

Finally, investors will want to recognize that ICFI has a P/CF ratio of 20.23. 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 stock's P/CF looks attractive against its industry's average P/CF of 27.91. Over the past year, ICFI's P/CF has been as high as 20.55 and as low as 16.88, with a median of 18.39.

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


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