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Is Ready Capital (RC) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Ready Capital (RC - Free Report) . RC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.85, which compares to its industry's average of 8.92. Over the last 12 months, RC's Forward P/E has been as high as 10 and as low as 7.45, with a median of 9.14.
Another valuation metric that we should highlight is RC's P/B ratio of 0.87. 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 1.24. Over the past 12 months, RC's P/B has been as high as 0.97 and as low as 0.77, with a median of 0.87.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RC has a P/S ratio of 2.78. This compares to its industry's average P/S of 4.02.
Finally, investors will want to recognize that RC has a P/CF ratio of 6.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RC's P/CF compares to its industry's average P/CF of 24.27. Within the past 12 months, RC's P/CF has been as high as 8.40 and as low as 5.49, with a median of 7.06.
These are only a few of the key metrics included in Ready Capital'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, RC looks like an impressive value stock at the moment.
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Is Ready Capital (RC) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Ready Capital (RC - Free Report) . RC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.85, which compares to its industry's average of 8.92. Over the last 12 months, RC's Forward P/E has been as high as 10 and as low as 7.45, with a median of 9.14.
Another valuation metric that we should highlight is RC's P/B ratio of 0.87. 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 1.24. Over the past 12 months, RC's P/B has been as high as 0.97 and as low as 0.77, with a median of 0.87.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RC has a P/S ratio of 2.78. This compares to its industry's average P/S of 4.02.
Finally, investors will want to recognize that RC has a P/CF ratio of 6.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RC's P/CF compares to its industry's average P/CF of 24.27. Within the past 12 months, RC's P/CF has been as high as 8.40 and as low as 5.49, with a median of 7.06.
These are only a few of the key metrics included in Ready Capital'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, RC looks like an impressive value stock at the moment.