Yahoo Finance Should Value Investors Buy Veritiv (VRTV) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Veritiv (VRTV). VRTV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.64, while its industry has an average P/E of 8.33. Over the past 52 weeks, VRTV's Forward P/E has been as high as 9.32 and as low as 4.69, with a median of 6.96.
Investors should also note that VRTV holds a PEG ratio of 0.36. 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. VRTV's industry currently sports an average PEG of 1. Within the past year, VRTV's PEG has been as high as 0.62 and as low as 0.30, with a median of 0.45.
We should also highlight that VRTV has a P/B ratio of 1.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. VRTV's current P/B looks attractive when compared to its industry's average P/B of 2.03. Within the past 52 weeks, VRTV's P/B has been as high as 3.52 and as low as 1.75, with a median of 2.36.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VRTV has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.33.
Finally, we should also recognize that VRTV has a P/CF ratio of 3.97. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.04. VRTV's P/CF has been as high as 9.50 and as low as 3.70, with a median of 4.82, all within the past year.
These are just a handful of the figures considered in Veritiv'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 VRTV is an impressive value stock right now.
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Veritiv Corporation (VRTV) : Free Stock Analysis Report
