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Is American Woodmark (AMWD) 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.
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.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.96 right now. For comparison, its industry sports an average P/E of 17.66. Over the past 52 weeks, AMWD's Forward P/E has been as high as 13.49 and as low as 7.24, with a median of 11.15.
Another valuation metric that we should highlight is AMWD's P/B ratio of 2.62. 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 stock's P/B looks attractive against its industry's average P/B of 4.09. Within the past 52 weeks, AMWD's P/B has been as high as 2.72 and as low as 1.56, with a median of 2.29.
Finally, we should also recognize that AMWD has a P/CF ratio of 8.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.71. Over the past year, AMWD's P/CF has been as high as 9.14 and as low as 6.40, with a median of 8.
These are just a handful of the figures considered in American Woodmark'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 AMWD is an impressive value stock right now.
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Is American Woodmark (AMWD) 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.
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.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.96 right now. For comparison, its industry sports an average P/E of 17.66. Over the past 52 weeks, AMWD's Forward P/E has been as high as 13.49 and as low as 7.24, with a median of 11.15.
Another valuation metric that we should highlight is AMWD's P/B ratio of 2.62. 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 stock's P/B looks attractive against its industry's average P/B of 4.09. Within the past 52 weeks, AMWD's P/B has been as high as 2.72 and as low as 1.56, with a median of 2.29.
Finally, we should also recognize that AMWD has a P/CF ratio of 8.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.71. Over the past year, AMWD's P/CF has been as high as 9.14 and as low as 6.40, with a median of 8.
These are just a handful of the figures considered in American Woodmark'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 AMWD is an impressive value stock right now.