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Are Investors Undervaluing LSI Industries (LYTS) Right Now?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is LSI Industries (LYTS - Free Report) . LYTS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.15. This compares to its industry's average Forward P/E of 11.16. Over the past year, LYTS's Forward P/E has been as high as 20.61 and as low as 8.55, with a median of 11.76.
We also note that LYTS holds a PEG ratio of 0.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LYTS's industry has an average PEG of 1.12 right now. Over the past 52 weeks, LYTS's PEG has been as high as 0.82 and as low as 0.34, with a median of 0.51.
We should also highlight that LYTS has a P/B ratio of 1.42. 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 stock's P/B looks solid versus its industry's average P/B of 1.93. Over the past 12 months, LYTS's P/B has been as high as 1.67 and as low as 1.03, with a median of 1.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LYTS has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LSI Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LYTS feels like a great value stock at the moment.
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Are Investors Undervaluing LSI Industries (LYTS) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is LSI Industries (LYTS - Free Report) . LYTS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.15. This compares to its industry's average Forward P/E of 11.16. Over the past year, LYTS's Forward P/E has been as high as 20.61 and as low as 8.55, with a median of 11.76.
We also note that LYTS holds a PEG ratio of 0.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LYTS's industry has an average PEG of 1.12 right now. Over the past 52 weeks, LYTS's PEG has been as high as 0.82 and as low as 0.34, with a median of 0.51.
We should also highlight that LYTS has a P/B ratio of 1.42. 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 stock's P/B looks solid versus its industry's average P/B of 1.93. Over the past 12 months, LYTS's P/B has been as high as 1.67 and as low as 1.03, with a median of 1.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LYTS has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LSI Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LYTS feels like a great value stock at the moment.