Yahoo Finance Should Value Investors Buy Insteel Industries (IIIN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Insteel Industries (IIIN) is a stock many investors are watching right now. IIIN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that IIIN has a P/B ratio of 1.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.66. Over the past 12 months, IIIN's P/B has been as high as 2.23 and as low as 1.38, with a median of 1.75.
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. IIIN has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.65.
These are just a handful of the figures considered in Insteel Industries'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 IIIN is an impressive value stock right now.
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Insteel Industries, Inc. (IIIN) : Free Stock Analysis Report
