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.
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 LCI Industries (LCII). LCII is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.19 right now. For comparison, its industry sports an average P/E of 18.47. Over the last 12 months, LCII's Forward P/E has been as high as 19.04 and as low as 10.65, with a median of 14.77.
Another notable valuation metric for LCII is its P/B ratio of 1.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.48. Within the past 52 weeks, LCII's P/B has been as high as 2.27 and as low as 1.39, with a median of 1.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LCI Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LCII feels like a great value stock at the moment.
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LCI Industries (LCII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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