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Are Investors Undervaluing Resources Connection (RGP) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Resources Connection (RGP - Free Report) . RGP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.43, which compares to its industry's average of 15.87. Over the past year, RGP's Forward P/E has been as high as 18.27 and as low as 8.54, with a median of 14.52.
We also note that RGP holds a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RGP's PEG compares to its industry's average PEG of 1.59. Within the past year, RGP's PEG has been as high as 1.09 and as low as 0.57, with a median of 0.70.
Another notable valuation metric for RGP is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.19. Over the past 12 months, RGP's P/B has been as high as 1.36 and as low as 0.79, with a median of 1.09.
Finally, our model also underscores that RGP has a P/CF ratio of 12.55. 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. RGP's current P/CF looks attractive when compared to its industry's average P/CF of 12.99. Within the past 12 months, RGP's P/CF has been as high as 15.36 and as low as 7.87, with a median of 11.90.
These are only a few of the key metrics included in Resources Connection'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, RGP looks like an impressive value stock at the moment.
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Are Investors Undervaluing Resources Connection (RGP) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Resources Connection (RGP - Free Report) . RGP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.43, which compares to its industry's average of 15.87. Over the past year, RGP's Forward P/E has been as high as 18.27 and as low as 8.54, with a median of 14.52.
We also note that RGP holds a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RGP's PEG compares to its industry's average PEG of 1.59. Within the past year, RGP's PEG has been as high as 1.09 and as low as 0.57, with a median of 0.70.
Another notable valuation metric for RGP is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.19. Over the past 12 months, RGP's P/B has been as high as 1.36 and as low as 0.79, with a median of 1.09.
Finally, our model also underscores that RGP has a P/CF ratio of 12.55. 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. RGP's current P/CF looks attractive when compared to its industry's average P/CF of 12.99. Within the past 12 months, RGP's P/CF has been as high as 15.36 and as low as 7.87, with a median of 11.90.
These are only a few of the key metrics included in Resources Connection'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, RGP looks like an impressive value stock at the moment.