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Is Oxford Square Capital (OXSQ) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Oxford Square Capital (OXSQ - Free Report) is a stock many investors are watching right now. OXSQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.50. This compares to its industry's average Forward P/E of 10.94. Over the past year, OXSQ's Forward P/E has been as high as 11.38 and as low as 8.64, with a median of 10.29.

Investors should also note that OXSQ holds a PEG ratio of 2.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OXSQ's industry has an average PEG of 3.47 right now. OXSQ's PEG has been as high as 2.28 and as low as 1.73, with a median of 2.02, all within the past year.

Finally, our model also underscores that OXSQ has a P/CF ratio of 9.27. 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. OXSQ's P/CF compares to its industry's average P/CF of 10.17. Over the past year, OXSQ's P/CF has been as high as 9.40 and as low as 3.82, with a median of 7.11.

These are just a handful of the figures considered in Oxford Square Capital'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 OXSQ is an impressive value stock right now.


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