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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Alamo Group (ALG - Free Report) . ALG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 17.91, while its industry has an average P/E of 20.42. Over the past 52 weeks, ALG's Forward P/E has been as high as 20.13 and as low as 9.81, with a median of 15.78.
Investors will also notice that ALG has a PEG ratio of 1.79. 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. ALG's PEG compares to its industry's average PEG of 3.16. Over the past 52 weeks, ALG's PEG has been as high as 2.01 and as low as 0.98, with a median of 1.60.
Investors should also recognize that ALG has a P/B ratio of 2.24. The P/B ratio is used to compare a stock's market value with 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 2.98. Over the past 12 months, ALG's P/B has been as high as 2.78 and as low as 1.56, with a median of 2.40.
Value investors will likely look at more than just these metrics, but the above data helps show that Alamo Group is likely undervalued currently. And when considering the strength of its earnings outlook, ALG sticks out at as one of the market's strongest value stocks.
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Is Alamo Group (ALG) Stock Undervalued Right Now?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Alamo Group (ALG - Free Report) . ALG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 17.91, while its industry has an average P/E of 20.42. Over the past 52 weeks, ALG's Forward P/E has been as high as 20.13 and as low as 9.81, with a median of 15.78.
Investors will also notice that ALG has a PEG ratio of 1.79. 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. ALG's PEG compares to its industry's average PEG of 3.16. Over the past 52 weeks, ALG's PEG has been as high as 2.01 and as low as 0.98, with a median of 1.60.
Investors should also recognize that ALG has a P/B ratio of 2.24. The P/B ratio is used to compare a stock's market value with 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 2.98. Over the past 12 months, ALG's P/B has been as high as 2.78 and as low as 1.56, with a median of 2.40.
Value investors will likely look at more than just these metrics, but the above data helps show that Alamo Group is likely undervalued currently. And when considering the strength of its earnings outlook, ALG sticks out at as one of the market's strongest value stocks.