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Is Lsb Industries (LXU) 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.

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.

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 Lsb Industries (LXU - Free Report) . LXU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.40, while its industry has an average P/E of 17.75. Over the past year, LXU's Forward P/E has been as high as 13.28 and as low as 4.22, with a median of 6.08.

Investors should also recognize that LXU has a P/B ratio of 1.34. 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 stock's P/B looks solid versus its industry's average P/B of 3.14. Within the past 52 weeks, LXU's P/B has been as high as 2.75 and as low as 1.20, with a median of 1.50.

Finally, investors should note that LXU has a P/CF ratio of 4.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LXU's P/CF compares to its industry's average P/CF of 12.84. Over the past 52 weeks, LXU's P/CF has been as high as 4.95 and as low as 2.47, with a median of 3.75.

These are only a few of the key metrics included in Lsb Industries'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, LXU looks like an impressive value stock at the moment.


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