Are Investors Undervaluing LSI Industries (LYTS) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is LSI Industries (LYTS). LYTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that LYTS holds a PEG ratio of 0.40. 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. LYTS's industry has an average PEG of 1.13 right now. LYTS's PEG has been as high as 0.82 and as low as 0.34, with a median of 0.44, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LYTS has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LSI Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LYTS feels like a great value stock at the moment.
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LSI Industries Inc. (LYTS) : Free Stock Analysis Report
