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Should Value Investors Buy Aegion (AEGN) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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 Aegion . AEGN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.32, which compares to its industry's average of 18.44. AEGN's Forward P/E has been as high as 20.58 and as low as 9.75, with a median of 15.39, all within the past year.

Investors should also note that AEGN holds a PEG ratio of 1.57. 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. AEGN's industry has an average PEG of 1.61 right now. Within the past year, AEGN's PEG has been as high as 1.62 and as low as 1.44, with a median of 1.54.

Finally, investors will want to recognize that AEGN has a P/CF ratio of 16.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.63. Within the past 12 months, AEGN's P/CF has been as high as 47.28 and as low as 14.35, with a median of 26.10.

These are only a few of the key metrics included in Aegion's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEGN looks like an impressive value stock at the moment.

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