Are Investors Undervaluing Virco Manufacturing (VIRC) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Virco Manufacturing (VIRC) is a stock many investors are watching right now. VIRC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VIRC has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.29.
Finally, we should also recognize that VIRC has a P/CF ratio of 2.58. 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. VIRC's current P/CF looks attractive when compared to its industry's average P/CF of 8.24. Over the past 52 weeks, VIRC's P/CF has been as high as 51.13 and as low as -16.12, with a median of 2.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Virco Manufacturing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIRC feels like a great value stock at the moment.
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Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
