Is Amalgamated Financial (AMAL) Stock Undervalued Right Now?

AMAL

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 value investors might notice is Amalgamated Financial (AMAL - Free Report) . AMAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.30, which compares to its industry's average of 8.02. Over the past 52 weeks, AMAL's Forward P/E has been as high as 9.15 and as low as 4.96, with a median of 6.23.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMAL has a P/S ratio of 1.83. This compares to its industry's average P/S of 3.39.

These are just a handful of the figures considered in Amalgamated Financial'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 AMAL is an impressive value stock right now.

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