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Is CECO Environmental (CECE) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is CECO Environmental . CECE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 16.88 right now. For comparison, its industry sports an average P/E of 19.16. Over the past 52 weeks, CECE's Forward P/E has been as high as 110.88 and as low as 11.46, with a median of 18.46.

Investors should also note that CECE holds a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CECE's industry currently sports an average PEG of 1.45. Over the past 52 weeks, CECE's PEG has been as high as 7.39 and as low as 0.76, with a median of 1.24.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CECE has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.

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

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