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, 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.
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.
Lifevantage (LFVN) is a stock many investors are watching right now. LFVN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.91, which compares to its industry's average of 17.61. Over the past year, LFVN's Forward P/E has been as high as 16.69 and as low as 9.91, with a median of 12.31.
We should also highlight that LFVN has a P/B ratio of 3.86. 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. LFVN's current P/B looks attractive when compared to its industry's average P/B of 5.14. Over the past year, LFVN's P/B has been as high as 10.74 and as low as 3.86, with a median of 5.38.
Finally, investors will want to recognize that LFVN has a P/CF ratio of 10.74. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.15. Within the past 12 months, LFVN's P/CF has been as high as 31.65 and as low as 10.74, with a median of 19.10.
These are only a few of the key metrics included in Lifevantage's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LFVN looks like an impressive value stock at the moment.
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Lifevantage Corporation (LFVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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