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Should Value Investors Buy Lifevantage (LFVN) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Lifevantage (LFVN - Free Report) . LFVN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.91 right now. For comparison, its industry sports an average P/E of 18.11. LFVN's Forward P/E has been as high as 16.69 and as low as 9.91, with a median of 12.31, all within the past year.

Another valuation metric that we should highlight is LFVN's P/B ratio of 3.86. 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 solid versus its industry's average P/B of 5.26. Within the past 52 weeks, LFVN's P/B has been as high as 10.74 and as low as 3.86, with a median of 5.38.

Finally, we should also recognize that LFVN has a P/CF ratio of 10.74. 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. LFVN's current P/CF looks attractive when compared to its industry's average P/CF of 19.52. Over the past 52 weeks, LFVN's P/CF has been as high as 31.65 and as low as 10.74, with a median of 19.10.

Value investors will likely look at more than just these metrics, but the above data helps show that Lifevantage is likely undervalued currently. And when considering the strength of its earnings outlook, LFVN sticks out as one of the market's strongest value stocks.


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