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Is Aecom Technology (ACM) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Aecom Technology (ACM - Free Report) . ACM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.79 right now. For comparison, its industry sports an average P/E of 16.61. ACM's Forward P/E has been as high as 19.43 and as low as 8.57, with a median of 12.59, all within the past year.

Investors will also notice that ACM has a PEG ratio of 1.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACM's industry currently sports an average PEG of 1.52. Over the past 52 weeks, ACM's PEG has been as high as 1.57 and as low as 0.69, with a median of 1.22.

We should also highlight that ACM has a P/B ratio of 1.53. 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 1.65. ACM's P/B has been as high as 2.13 and as low as 0.98, with a median of 1.59, over the past year.

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. ACM has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.47.

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


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