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Should Value Investors Buy Limbach (LMB) Stock?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Limbach (LMB - Free Report) . LMB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 20.12, which compares to its industry's average of 32.12. Over the past year, LMB's Forward P/E has been as high as 28.03 and as low as 12.75, with a median of 20.49.

LMB is also sporting a PEG ratio of 1.68. 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. LMB's PEG compares to its industry's average PEG of 2.52. LMB's PEG has been as high as 2.34 and as low as 1.06, with a median of 1.71, all within the past year.

Finally, we should also recognize that LMB has a P/CF ratio of 16.33. 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 35.67. LMB's P/CF has been as high as 21.16 and as low as 9.06, with a median of 15.80, all within the past year.

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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