We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing LSI Industries (LYTS) Right Now?
Read MoreHide Full Article
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
LSI Industries (LYTS - Free Report) is a stock many investors are watching right now. LYTS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for LYTS is its P/B ratio of 2.15. 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 2.64. Over the past 12 months, LYTS's P/B has been as high as 2.60 and as low as 1.89, with a median of 2.17.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LYTS has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that LYTS has a P/CF ratio of 12.84. 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. LYTS's P/CF compares to its industry's average P/CF of 13.45. Over the past 52 weeks, LYTS's P/CF has been as high as 14.96 and as low as 9.83, with a median of 12.
Value investors will likely look at more than just these metrics, but the above data helps show that LSI Industries is likely undervalued currently. And when considering the strength of its earnings outlook, LYTS sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing LSI Industries (LYTS) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
LSI Industries (LYTS - Free Report) is a stock many investors are watching right now. LYTS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for LYTS is its P/B ratio of 2.15. 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 2.64. Over the past 12 months, LYTS's P/B has been as high as 2.60 and as low as 1.89, with a median of 2.17.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LYTS has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that LYTS has a P/CF ratio of 12.84. 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. LYTS's P/CF compares to its industry's average P/CF of 13.45. Over the past 52 weeks, LYTS's P/CF has been as high as 14.96 and as low as 9.83, with a median of 12.
Value investors will likely look at more than just these metrics, but the above data helps show that LSI Industries is likely undervalued currently. And when considering the strength of its earnings outlook, LYTS sticks out at as one of the market's strongest value stocks.