Is Patrick Industries (PATK) a Great Value Stock 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Patrick Industries (PATK). PATK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.33. This compares to its industry's average Forward P/E of 17.93. Over the past 52 weeks, PATK's Forward P/E has been as high as 24.07 and as low as 4.43, with a median of 12.68.
Investors will also notice that PATK has a PEG ratio of 1.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PATK's PEG compares to its industry's average PEG of 1.56. PATK's PEG has been as high as 10.81 and as low as 0.64, with a median of 1.71, all within the past year.
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. PATK has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.43.
Finally, we should also recognize that PATK has a P/CF ratio of 9.79. 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. PATK's current P/CF looks attractive when compared to its industry's average P/CF of 16.63. Over the past year, PATK's P/CF has been as high as 11.61 and as low as 2.83, with a median of 7.79.
These are just a handful of the figures considered in Patrick Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PATK is an impressive value stock right now.
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