Back to top

Image: Bigstock

Should Value Investors Buy Virco Manufacturing (VIRC) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Virco Manufacturing (VIRC - Free Report) . VIRC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.25. This compares to its industry's average Forward P/E of 13.54. Over the past year, VIRC's Forward P/E has been as high as 10.67 and as low as 4.22, with a median of 5.90.

Investors should also recognize that VIRC has a P/B ratio of 2.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.51. Within the past 52 weeks, VIRC's P/B has been as high as 3.16 and as low as 0.86, with a median of 1.77.

Finally, our model also underscores that VIRC has a P/CF ratio of 7.99. 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. VIRC's P/CF compares to its industry's average P/CF of 14.11. VIRC's P/CF has been as high as 9.44 and as low as 2.28, with a median of 5.70, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Virco Manufacturing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIRC feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Virco Manufacturing Corporation (VIRC) - free report >>

Published in