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Is LSI Industries (LYTS) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is LSI Industries (LYTS - Free Report) . LYTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that LYTS has a P/B ratio of 1.46. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.79. Within the past 52 weeks, LYTS's P/B has been as high as 1.70 and as low as 1.03, with a median of 1.31.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LYTS has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.65.

Finally, investors will want to recognize that LYTS has a P/CF ratio of 8.85. 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. LYTS's current P/CF looks attractive when compared to its industry's average P/CF of 9.19. Over the past year, LYTS's P/CF has been as high as 16.71 and as low as 6.46, with a median of 10.77.

These are just a handful of the figures considered in LSI Industries'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 LYTS is an impressive value stock right now.


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