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Is Lsb Industries (LXU) Stock Undervalued Right Now?

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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 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.

Lsb Industries (LXU - Free Report) is a stock many investors are watching right now. LXU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

LXU is also sporting a PEG ratio of 0.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LXU's industry currently sports an average PEG of 0.85. Over the past 52 weeks, LXU's PEG has been as high as 16.87 and as low as 0.73, with a median of 1.17.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LXU has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.25.

Finally, investors will want to recognize that LXU has a P/CF ratio of 10.03. 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 13.93. Over the past 52 weeks, LXU's P/CF has been as high as 11.15 and as low as 5.52, with a median of 7.33.

These are only a few of the key metrics included in Lsb Industries'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, LXU looks like an impressive value stock at the moment.


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