We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing American Woodmark (AMWD) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.29, which compares to its industry's average of 16.69. Over the last 12 months, AMWD's Forward P/E has been as high as 15.42 and as low as 6.62, with a median of 8.21.
Another notable valuation metric for AMWD is its P/B ratio of 1.15. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.36. Over the past 12 months, AMWD's P/B has been as high as 1.33 and as low as 0.88, with a median of 1.05.
Finally, investors should note that AMWD has a P/CF ratio of 8.68. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AMWD's P/CF compares to its industry's average P/CF of 9.25. Over the past year, AMWD's P/CF has been as high as 17.45 and as low as 6.59, with a median of 10.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Woodmark is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMWD feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing American Woodmark (AMWD) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.29, which compares to its industry's average of 16.69. Over the last 12 months, AMWD's Forward P/E has been as high as 15.42 and as low as 6.62, with a median of 8.21.
Another notable valuation metric for AMWD is its P/B ratio of 1.15. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.36. Over the past 12 months, AMWD's P/B has been as high as 1.33 and as low as 0.88, with a median of 1.05.
Finally, investors should note that AMWD has a P/CF ratio of 8.68. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AMWD's P/CF compares to its industry's average P/CF of 9.25. Over the past year, AMWD's P/CF has been as high as 17.45 and as low as 6.59, with a median of 10.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Woodmark is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMWD feels like a great value stock at the moment.