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Should Value Investors Buy ICF International (ICFI) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is ICF International (ICFI - Free Report) . ICFI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Investors should also recognize that ICFI has a P/B ratio of 1.75. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.28. Over the past 12 months, ICFI's P/B has been as high as 3.38 and as low as 1.48, with a median of 1.81.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ICFI has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.94.

Finally, we should also recognize that ICFI has a P/CF ratio of 10.74. 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 16.96. Over the past 52 weeks, ICFI's P/CF has been as high as 20.45 and as low as 8.92, with a median of 11.08.

These are just a handful of the figures considered in ICF International'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 ICFI is an impressive value stock right now.


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