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Is Aecom Technology (ACM) Stock Undervalued Right Now?

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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Aecom Technology (ACM - Free Report) . ACM 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 12.25. This compares to its industry's average Forward P/E of 14.42. Over the last 12 months, ACM's Forward P/E has been as high as 14.39 and as low as 10.80, with a median of 12.53.

We should also highlight that ACM has a P/B ratio of 1.23. The P/B ratio is used to compare a stock's market value with 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 2.03. Within the past 52 weeks, ACM's P/B has been as high as 1.47 and as low as 1.21, with a median of 1.30.

Finally, investors should note that ACM has a P/CF ratio of 12.93. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ACM's P/CF compares to its industry's average P/CF of 14.09. Over the past 52 weeks, ACM's P/CF has been as high as 13.53 and as low as 8.23, with a median of 10.74.

These are just a handful of the figures considered in Aecom Technology'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 ACM is an impressive value stock right now.


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