Back to top

Image: Bigstock

Is Acco Brands (ACCO) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Acco Brands (ACCO - Free Report) . ACCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.31, which compares to its industry's average of 13.56. Over the last 12 months, ACCO's Forward P/E has been as high as 10.22 and as low as 4.83, with a median of 7.39.

Investors should also note that ACCO holds a PEG ratio of 0.63. 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. ACCO's PEG compares to its industry's average PEG of 1.47. ACCO's PEG has been as high as 1.02 and as low as 0.48, with a median of 0.74, all within the past year.

Finally, investors should note that ACCO has a P/CF ratio of 4.68. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.56. Within the past 12 months, ACCO's P/CF has been as high as 7.28 and as low as 3.05, with a median of 5.22.

Value investors will likely look at more than just these metrics, but the above data helps show that Acco Brands is likely undervalued currently. And when considering the strength of its earnings outlook, ACCO sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Acco Brands Corporation (ACCO) - free report >>

Published in