Yahoo Finance Are Investors Undervaluing Latham Group (SWIM) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
One company value investors might notice is Latham Group (SWIM). SWIM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SWIM has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.76.
Finally, we should also recognize that SWIM has a P/CF ratio of 7.02. 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. SWIM's P/CF compares to its industry's average P/CF of 27.03. SWIM's P/CF has been as high as 21.33 and as low as 5.98, with a median of 9.71, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Latham Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWIM feels like a great value stock at the moment.
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Latham Group, Inc. (SWIM) : Free Stock Analysis Report
