Are Investors Undervaluing L.B. Foster (FSTR) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 L.B. Foster (FSTR). FSTR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 19.95, while its industry has an average P/E of 45.76. Over the past year, FSTR's Forward P/E has been as high as 26.97 and as low as 4.38, with a median of 17.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSTR has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.64.
These are just a handful of the figures considered in L.B. Foster'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 FSTR is an impressive value stock right now.
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L.B. Foster Company (FSTR) : Free Stock Analysis Report
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