Back to top

Image: Bigstock

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

Read MoreHide Full Article

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, 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.

One company value investors might notice is Ladenburg Thalmann . LTS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that LTS has a P/B ratio of 2.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. LTS's current P/B looks attractive when compared to its industry's average P/B of 2.22. Within the past 52 weeks, LTS's P/B has been as high as 2.29 and as low as 1.10, with a median of 1.85.

Finally, investors will want to recognize that LTS has a P/CF ratio of 6.95. 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. LTS's current P/CF looks attractive when compared to its industry's average P/CF of 17.19. Within the past 12 months, LTS's P/CF has been as high as 8.80 and as low as 3.72, with a median of 6.91.

These are just a handful of the figures considered in Ladenburg Thalmann'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 LTS is an impressive value stock right now.

Published in