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Are Investors Undervaluing Covenant Logistics Group (CVLG) 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, 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.
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.
Covenant Logistics Group (CVLG - Free Report) is a stock many investors are watching right now. CVLG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.90, while its industry has an average P/E of 26.58. CVLG's Forward P/E has been as high as 12.97 and as low as 7.86, with a median of 10.37, all within the past year.
Another valuation metric that we should highlight is CVLG's P/B ratio of 1.80. 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 4.36. Within the past 52 weeks, CVLG's P/B has been as high as 2.77 and as low as 1.27, with a median of 1.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVLG has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.11.
Finally, we should also recognize that CVLG has a P/CF ratio of 6.52. 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. CVLG's P/CF compares to its industry's average P/CF of 16.94. Within the past 12 months, CVLG's P/CF has been as high as 6.52 and as low as 3.78, with a median of 5.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics Group is likely undervalued currently. And when considering the strength of its earnings outlook, CVLG sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Covenant Logistics Group (CVLG) Right Now?
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, 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.
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.
Covenant Logistics Group (CVLG - Free Report) is a stock many investors are watching right now. CVLG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.90, while its industry has an average P/E of 26.58. CVLG's Forward P/E has been as high as 12.97 and as low as 7.86, with a median of 10.37, all within the past year.
Another valuation metric that we should highlight is CVLG's P/B ratio of 1.80. 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 4.36. Within the past 52 weeks, CVLG's P/B has been as high as 2.77 and as low as 1.27, with a median of 1.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVLG has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.11.
Finally, we should also recognize that CVLG has a P/CF ratio of 6.52. 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. CVLG's P/CF compares to its industry's average P/CF of 16.94. Within the past 12 months, CVLG's P/CF has been as high as 6.52 and as low as 3.78, with a median of 5.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics Group is likely undervalued currently. And when considering the strength of its earnings outlook, CVLG sticks out at as one of the market's strongest value stocks.