Should Value Investors Buy LSI Industries (LYTS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
LSI Industries (LYTS) is a stock many investors are watching right now. LYTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
LYTS is also sporting a PEG ratio of 0.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LYTS's PEG compares to its industry's average PEG of 1.13. LYTS's PEG has been as high as 0.40 and as low as 0.34, with a median of 0.37, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LYTS has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.92.
These are only a few of the key metrics included in LSI Industries'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, LYTS looks like an impressive value stock at the moment.
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LSI Industries Inc. (LYTS) : Free Stock Analysis Report
