Is Echo Global Logistics (ECHO) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice 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 18.11, while its industry has an average P/E of 25. Over the last 12 months, ECHO's Forward P/E has been as high as 25.44 and as low as 12.28, with a median of 18.59.
We also note that ECHO holds a PEG ratio of 1.04. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ECHO's industry has an average PEG of 2.12 right now. ECHO's PEG has been as high as 1.41 and as low as 0.70, with a median of 1.06, all within the past year.
Another valuation metric that we should highlight is ECHO's P/B ratio of 2.05. The P/B is a method of comparing a stock's market value to 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 3.94. Over the past year, ECHO's P/B has been as high as 2.08 and as low as 1.05, with a median of 1.54.
Finally, investors should note that ECHO has a P/CF ratio of 17.50. 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. ECHO's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. ECHO's P/CF has been as high as 17.76 and as low as 7.39, with a median of 11.64, all within the past year.
These are just a handful of the figures considered in Echo Global Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ECHO is an impressive value stock right now.
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