Is Rocky Brands (RCKY) Stock Undervalued 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 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.
Rocky Brands (RCKY) is a stock many investors are watching right now. RCKY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 18.42 right now. For comparison, its industry sports an average P/E of 33.04. Over the past year, RCKY's Forward P/E has been as high as 18.42 and as low as 6.39, with a median of 13.62.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RCKY has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.79.
Finally, we should also recognize that RCKY has a P/CF ratio of 9.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.01. Over the past 52 weeks, RCKY's P/CF has been as high as 11.81 and as low as 4.94, with a median of 9.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rocky Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCKY feels like a great value stock at the moment.
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