U.S. Markets closed

Is Ladenburg Thalmann (LTS) Stock Undervalued Right Now?

Zacks Equity Research

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Ladenburg Thalmann (LTS). LTS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that LTS has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against 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 2.22. LTS's P/B has been as high as 2.29 and as low as 1.10, with a median of 1.78, over the past year.

Finally, we should also recognize that LTS has a P/CF ratio of 6.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.19. LTS's P/CF has been as high as 8.94 and as low as 3.72, with a median of 6.91, all within the past year.

These are just a handful of the figures considered in Ladenburg Thalmann'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 LTS is an impressive value stock right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ladenburg Thalmann Financial Services Inc (LTS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research