The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is RCM Technologies (RCMT). RCMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.35, which compares to its industry's average of 16.55. Over the past year, RCMT's Forward P/E has been as high as 15.75 and as low as 7.03, with a median of 8.44.
Finally, our model also underscores that RCMT has a P/CF ratio of 10.61. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.59. Over the past 52 weeks, RCMT's P/CF has been as high as 14.40 and as low as 7.98, with a median of 9.54.
These are only a few of the key metrics included in RCM Technologies'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, RCMT looks like an impressive value stock at the moment.
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RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report
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