Is Steelcase (SCS) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Steelcase (SCS). SCS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that SCS has a P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.38. Within the past 52 weeks, SCS's P/B has been as high as 1.84 and as low as 0.89, with a median of 1.53.

Finally, we should also recognize that SCS has a P/CF ratio of 9.61. 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. SCS's current P/CF looks attractive when compared to its industry's average P/CF of 10.78. Within the past 12 months, SCS's P/CF has been as high as 10.46 and as low as 5.55, with a median of 9.12.

Value investors will likely look at more than just these metrics, but the above data helps show that Steelcase is likely undervalued currently. And when considering the strength of its earnings outlook, SCS sticks out at as one of the market's strongest value stocks.

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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.

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