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Is American Axle & Manufacturing (AXL) Stock Undervalued Right Now?
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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.
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 to watch right now is American Axle & Manufacturing (AXL - Free Report) . AXL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.76 right now. For comparison, its industry sports an average P/E of 10.39. Over the last 12 months, AXL's Forward P/E has been as high as 5.22 and as low as 3.21, with a median of 4.40.
Investors should also note that AXL holds a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXL's industry currently sports an average PEG of 1.04. AXL's PEG has been as high as 0.65 and as low as 0.40, with a median of 0.54, all within the past year.
We should also highlight that AXL has a P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AXL's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, AXL's P/B has been as high as 1.31 and as low as 0.63, with a median of 1.05.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AXL has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.42.
Finally, investors should note that AXL has a P/CF ratio of 1.85. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.22. AXL's P/CF has been as high as 2.70 and as low as 1.30, with a median of 2.11, all within the past year.
These are only a few of the key metrics included in American Axle & Manufacturing'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, AXL looks like an impressive value stock at the moment.
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Is American Axle & Manufacturing (AXL) Stock Undervalued 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.
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 to watch right now is American Axle & Manufacturing (AXL - Free Report) . AXL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.76 right now. For comparison, its industry sports an average P/E of 10.39. Over the last 12 months, AXL's Forward P/E has been as high as 5.22 and as low as 3.21, with a median of 4.40.
Investors should also note that AXL holds a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXL's industry currently sports an average PEG of 1.04. AXL's PEG has been as high as 0.65 and as low as 0.40, with a median of 0.54, all within the past year.
We should also highlight that AXL has a P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AXL's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, AXL's P/B has been as high as 1.31 and as low as 0.63, with a median of 1.05.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AXL has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.42.
Finally, investors should note that AXL has a P/CF ratio of 1.85. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.22. AXL's P/CF has been as high as 2.70 and as low as 1.30, with a median of 2.11, all within the past year.
These are only a few of the key metrics included in American Axle & Manufacturing'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, AXL looks like an impressive value stock at the moment.