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Is Aaron's (AAN) a Great Value Stock 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.

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

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Aaron's (AAN - Free Report) . AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that AAN has a P/B ratio of 1.98. 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 3.20. Within the past 52 weeks, AAN's P/B has been as high as 2.20 and as low as 1.54, with a median of 1.84.

Finally, investors should note that AAN has a P/CF ratio of 1.73. 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. AAN's P/CF compares to its industry's average P/CF of 6.36. Within the past 12 months, AAN's P/CF has been as high as 1.99 and as low as 1.34, with a median of 1.67.

These are just a handful of the figures considered in Aaron's'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 AAN is an impressive value stock right now.


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