Back to top

Image: Bigstock

Is Ladenburg Thalmann (LTS) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Ladenburg Thalmann is a stock many investors are watching right now. LTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that LTS has a P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.13. LTS's P/B has been as high as 2.29 and as low as 1.10, with a median of 1.66, over the past year.

Finally, our model also underscores that LTS has a P/CF ratio of 7.09. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.64. Over the past year, LTS's P/CF has been as high as 9.34 and as low as 3.72, with a median of 7.09.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ladenburg Thalmann is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTS feels like a great value stock at the moment.

Published in