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Should Value Investors Buy Covenant Logistics Group (CVLG) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.02 right now. For comparison, its industry sports an average P/E of 27.60. CVLG's Forward P/E has been as high as 13.69 and as low as 7.81, with a median of 10.93, all within the past year.
We should also highlight that CVLG has a P/B ratio of 1.57. The P/B is a method of comparing a stock's market value to 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 3.77. Within the past 52 weeks, CVLG's P/B has been as high as 1.85 and as low as 1.06, with a median of 1.59.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVLG has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.97.
Finally, investors should note that CVLG has a P/CF ratio of 5.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.33. CVLG's P/CF has been as high as 6.76 and as low as 3.93, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Covenant Logistics Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVLG is an impressive value stock right now.
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Should Value Investors Buy Covenant Logistics Group (CVLG) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.02 right now. For comparison, its industry sports an average P/E of 27.60. CVLG's Forward P/E has been as high as 13.69 and as low as 7.81, with a median of 10.93, all within the past year.
We should also highlight that CVLG has a P/B ratio of 1.57. The P/B is a method of comparing a stock's market value to 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 3.77. Within the past 52 weeks, CVLG's P/B has been as high as 1.85 and as low as 1.06, with a median of 1.59.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVLG has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.97.
Finally, investors should note that CVLG has a P/CF ratio of 5.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.33. CVLG's P/CF has been as high as 6.76 and as low as 3.93, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Covenant Logistics Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVLG is an impressive value stock right now.