Is Radiant Logistics (RLGT) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Radiant Logistics (RLGT) is a stock many investors are watching right now. RLGT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RLGT has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that RLGT has a P/CF ratio of 10.84. 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. RLGT's P/CF compares to its industry's average P/CF of 11.03. Within the past 12 months, RLGT's P/CF has been as high as 12.04 and as low as 7.14, with a median of 10.17.
These are only a few of the key metrics included in Radiant Logistics'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, RLGT looks like an impressive value stock at the moment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.