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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
One company to watch right now is Radiant Logistics (RLGT - Free Report) . RLGT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.23 right now. For comparison, its industry sports an average P/E of 12.48. Over the past year, RLGT's Forward P/E has been as high as 16.64 and as low as 8.94, with a median of 11.80.
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. RLGT has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.57.
Finally, investors should note that RLGT has a P/CF ratio of 10.57. 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. RLGT's current P/CF looks attractive when compared to its industry's average P/CF of 11.52. Over the past 52 weeks, RLGT's P/CF has been as high as 12.04 and as low as 7.26, with a median of 9.94.
These are just a handful of the figures considered in Radiant Logistics'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 RLGT is an impressive value stock right now.