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Should Value Investors Buy Orion Marine Group (ORN) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Orion Marine Group (ORN - Free Report) . ORN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.69. This compares to its industry's average Forward P/E of 12.88. Over the past year, ORN's Forward P/E has been as high as 5,128.73 and as low as -2,199.04, with a median of 27.79.

We should also highlight that ORN has a P/B ratio of 0.64. 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. ORN's current P/B looks attractive when compared to its industry's average P/B of 1.80. Within the past 52 weeks, ORN's P/B has been as high as 1.26 and as low as 0.34, with a median of 0.90.

Finally, our model also underscores that ORN has a P/CF ratio of 2.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8. Over the past 52 weeks, ORN's P/CF has been as high as 28.56 and as low as -25.97, with a median of 1.94.

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

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