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Should Value Investors Buy Gibraltar Industries (ROCK) Stock?

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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.

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.

Gibraltar Industries (ROCK - Free Report) is a stock many investors are watching right now. ROCK is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.68. This compares to its industry's average Forward P/E of 18.57. ROCK's Forward P/E has been as high as 15.52 and as low as 9.82, with a median of 12.52, all within the past year.

Investors should also note that ROCK holds a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ROCK's PEG compares to its industry's average PEG of 1.54. ROCK's PEG has been as high as 0.97 and as low as 0.77, with a median of 0.90, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ROCK has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.67.

Finally, investors will want to recognize that ROCK has a P/CF ratio of 11.72. 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. ROCK's current P/CF looks attractive when compared to its industry's average P/CF of 16.46. Within the past 12 months, ROCK's P/CF has been as high as 16.53 and as low as 9.37, with a median of 11.78.

These are only a few of the key metrics included in Gibraltar 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, ROCK looks like an impressive value stock at the moment.

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