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Are Investors Undervaluing Randstad Holding (RANJY) Right Now?

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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.

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.

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 company to watch right now is Randstad Holding (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that RANJY has a P/B ratio of 1.83. 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. RANJY's current P/B looks attractive when compared to its industry's average P/B of 2.33. RANJY's P/B has been as high as 2.49 and as low as 1.75, with a median of 2.14, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RANJY has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.44.

Finally, we should also recognize that RANJY has a P/CF ratio of 6.27. 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. RANJY's current P/CF looks attractive when compared to its industry's average P/CF of 7.30. RANJY's P/CF has been as high as 13.78 and as low as 6.10, with a median of 8.38, all within the past year.

Investors could also keep in mind RCM Technologies (RCMT - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

RCM Technologies also has a P/B ratio of 4.36 compared to its industry's price-to-book ratio of 2.33. Over the past year, its P/B ratio has been as high as 9.40, as low as 2.37, with a median of 3.59.

These are only a few of the key metrics included in Randstad Holding and RCM Technologies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RANJY and RCMT look like an impressive value stock at the moment.


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