Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

RPM International (RPM)

RPM International Inc., through its subsidiaries, manufacture and market high-performance coatings, sealants and specialty chemicals, primarily for maintenance and improvement applications.

RPM is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 23.2X for the current fiscal year compared to the Paints and Related Products industry's P/E of 26.2X. Additionally, RPM has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 20.1X. Value investors should also note RPM's Price/Sales ratio of 2X.

A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for RPM, while the Zacks Consensus Estimate has increased $0.00 to $5.01 per share. RPM also holds an average earnings surprise of 8.3%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RPM to their portfolios.

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