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Should Value Investors Buy ARC Document Solutions (ARC) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is ARC Document Solutions (ARC - Free Report) . ARC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.73, while its industry has an average P/E of 16.80. Over the last 12 months, ARC's Forward P/E has been as high as 27.51 and as low as 15, with a median of 19.93.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARC has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.69.

Finally, investors should note that ARC has a P/CF ratio of 3.65. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ARC's P/CF compares to its industry's average P/CF of 7.69. Over the past 52 weeks, ARC's P/CF has been as high as 8.01 and as low as 2.57, with a median of 3.74.

These are just a handful of the figures considered in ARC Document Solutions'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 ARC is an impressive value stock right now.


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