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Is LCI Industries (LCII) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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.

LCI Industries (LCII - Free Report) is a stock many investors are watching right now. LCII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCII has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.72.

Finally, investors should note that LCII has a P/CF ratio of 12.08. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 24.75. LCII's P/CF has been as high as 18.30 and as low as 8.13, with a median of 14.96, all within the past year.

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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