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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Echo Global Logistics (ECHO) is a stock many investors are watching right now. ECHO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.21, which compares to its industry's average of 21.70. ECHO's Forward P/E has been as high as 25.44 and as low as 12.97, with a median of 17.41, all within the past year.
Investors should also note that ECHO holds a PEG ratio of 0.75. 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. ECHO's PEG compares to its industry's average PEG of 1.40. ECHO's PEG has been as high as 1.41 and as low as 0.74, with a median of 1, all within the past year.
Another valuation metric that we should highlight is ECHO's P/B ratio of 1.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.43. Over the past year, ECHO's P/B has been as high as 2.37 and as low as 1.65, with a median of 1.93.
Finally, investors should note that ECHO has a P/CF ratio of 11.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ECHO's current P/CF looks attractive when compared to its industry's average P/CF of 33. Over the past 52 weeks, ECHO's P/CF has been as high as 17.76 and as low as 11.24, with a median of 14.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Echo Global Logistics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ECHO feels like a great value stock at the moment.
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Echo Global Logistics, Inc. (ECHO) : Free Stock Analysis Report
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