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Should Value Investors Buy Grupo Aval Acciones y Valores (AVAL) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Grupo Aval Acciones y Valores (AVAL - Free Report) . AVAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.45. This compares to its industry's average Forward P/E of 14.14. Over the last 12 months, AVAL's Forward P/E has been as high as 11.84 and as low as 6.30, with a median of 8.07.

Finally, we should also recognize that AVAL has a P/CF ratio of 4.32. 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. AVAL's current P/CF looks attractive when compared to its industry's average P/CF of 14.89. Over the past year, AVAL's P/CF has been as high as 9.13 and as low as 4.22, with a median of 5.36.

These are only a few of the key metrics included in Grupo Aval Acciones y Valores'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, AVAL looks like an impressive value stock at the moment.


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