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Are Investors Undervaluing VirTra (VTSI) 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, 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is VirTra (VTSI - Free Report) . VTSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.76 right now. For comparison, its industry sports an average P/E of 11.78. Over the last 12 months, VTSI's Forward P/E has been as high as 21.46 and as low as 8.37, with a median of 13.84.

Another valuation metric that we should highlight is VTSI's P/B ratio of 2.30. 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. This stock's P/B looks solid versus its industry's average P/B of 2.31. Over the past year, VTSI's P/B has been as high as 4.32 and as low as 1.19, with a median of 2.33.

Finally, our model also underscores that VTSI has a P/CF ratio of 12.32. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.38. Within the past 12 months, VTSI's P/CF has been as high as 23.13 and as low as 5.63, with a median of 12.05.

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


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