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Is Echo Global Logistics (ECHO) a Great Value Stock Right Now?

Zacks Equity Research
·3 min read

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.

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 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 to watch right now is Echo Global Logistics (ECHO). ECHO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 20.44, while its industry has an average P/E of 26.19. ECHO's Forward P/E has been as high as 25.44 and as low as 12.28, with a median of 17.15, all within the past year.

ECHO is also sporting a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ECHO's industry currently sports an average PEG of 2.23. ECHO's PEG has been as high as 1.41 and as low as 0.70, with a median of 0.98, all within the past year.

We should also highlight that ECHO has a P/B ratio of 1.97. 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 3.94. Over the past 12 months, ECHO's P/B has been as high as 2.04 and as low as 1.05, with a median of 1.50.

Finally, we should also recognize that ECHO has a P/CF ratio of 16.79. 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. ECHO's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. Within the past 12 months, ECHO's P/CF has been as high as 17.45 and as low as 7.39, with a median of 10.77.

These are only a few of the key metrics included in Echo Global 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, ECHO looks like an impressive value stock at the moment.


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Zacks Investment Research