Back to top

Image: Bigstock

Is Preferred Apartment Communities (APTS) Stock Undervalued Right Now?

Read MoreHide Full Article

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

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.

Preferred Apartment Communities is a stock many investors are watching right now. APTS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.20, while its industry has an average P/E of 17.61. Over the past 52 weeks, APTS's Forward P/E has been as high as 9.93 and as low as 5.22, with a median of 8.43.

APTS is also sporting a PEG ratio of 1.21. 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. APTS's industry currently sports an average PEG of 3.19. Within the past year, APTS's PEG has been as high as 1.42 and as low as 1.21, with a median of 1.34.

These are just a handful of the figures considered in Preferred Apartment Communities'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 APTS is an impressive value stock right now.

Published in