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Are Investors Undervaluing Limbach (LMB) 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.

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 value investors might notice is Limbach (LMB - Free Report) . LMB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 21.01, while its industry has an average P/E of 34.26. LMB's Forward P/E has been as high as 28.03 and as low as 12.75, with a median of 20.37, all within the past year.

We also note that LMB holds a PEG ratio of 1.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LMB's industry has an average PEG of 2.69 right now. Over the last 12 months, LMB's PEG has been as high as 2.34 and as low as 1.06, with a median of 1.70.

Finally, our model also underscores that LMB has a P/CF ratio of 16.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 38.01. Within the past 12 months, LMB's P/CF has been as high as 21.16 and as low as 9.06, with a median of 15.29.

These are only a few of the key metrics included in Limbach's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LMB looks like an impressive value stock at the moment.


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