Is Rimini Street (RMNI) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Rimini Street (RMNI). RMNI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that RMNI has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RMNI's PEG compares to its industry's average PEG of 1.80.
Finally, we should also recognize that RMNI has a P/CF ratio of 7.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.10. RMNI's P/CF has been as high as 68.50 and as low as 7.47, with a median of 16.63, all within the past year.
These are only a few of the key metrics included in Rimini Street's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RMNI looks like an impressive value stock at the moment.
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
Rimini Street, Inc. (RMNI) : Free Stock Analysis Report
