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Is Regional Management (RM) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 company value investors might notice is Regional Management (RM - Free Report) . RM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.55, which compares to its industry's average of 8.03. Over the last 12 months, RM's Forward P/E has been as high as 8.60 and as low as 6.35, with a median of 7.07.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RM has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.39.

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


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