Are Investors Undervaluing Moog (MOG.A) Right Now?

MOG.A

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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Moog (MOG.A - Free Report) . MOG.A is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.43 right now. For comparison, its industry sports an average P/E of 23.91. Over the past 52 weeks, MOG.A's Forward P/E has been as high as 17.76 and as low as 12.25, with a median of 14.45.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOG.A has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.37.

Finally, our model also underscores that MOG.A has a P/CF ratio of 11. 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. MOG.A's P/CF compares to its industry's average P/CF of 18.17. MOG.A's P/CF has been as high as 35.50 and as low as 8.84, with a median of 18.42, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Moog is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOG.A feels like a great value stock at the moment.

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