Is Regional Management (RM) Stock Undervalued 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Regional Management (RM). RM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.55. This compares to its industry's average Forward P/E of 8.24. Over the past 52 weeks, RM's Forward P/E has been as high as 8.60 and as low as 2.57, with a median of 7.01.

Another notable valuation metric for RM is its P/B ratio of 0.53. 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 solid versus its industry's average P/B of 0.90. Over the past 12 months, RM's P/B has been as high as 1.32 and as low as 0.38, with a median of 1.04.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RM has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.77.

Finally, investors will want to recognize that RM has a P/CF ratio of 2.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.05. RM's P/CF has been as high as 7.92 and as low as 2.13, with a median of 6.84, all within the past year.

These are only a few of the key metrics included in Regional Management'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, RM looks like an impressive value stock at the moment.

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