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Is Rimini Street (RMNI) Stock Undervalued 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Rimini Street (RMNI - Free Report) . RMNI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that RMNI holds a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RMNI's industry has an average PEG of 1.79 right now.

Finally, investors will want to recognize that RMNI has a P/CF ratio of 8.57. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.43. Over the past 52 weeks, RMNI's P/CF has been as high as 57.26 and as low as 7.47, with a median of 15.44.

StoneCo (STNE - Free Report) may be another strong Internet - Software stock to add to your shortlist. STNE is a # 2 (Buy) stock with a Value grade of A.

StoneCo is currently trading with a Forward P/E ratio of 12.97 while its PEG ratio sits at 0.25. Both of the company's metrics compare favorably to its industry's average P/E of 36.39 and average PEG ratio of 1.79.


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