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Are Investors Undervaluing Ampco-Pittsburgh (AP) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Ampco-Pittsburgh (AP - Free Report) . AP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.11 right now. For comparison, its industry sports an average P/E of 10.91. AP's Forward P/E has been as high as 103.28 and as low as -65.86, with a median of -13.79, all within the past year.

Finally, we should also recognize that AP has a P/CF ratio of 1.88. 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. AP's current P/CF looks attractive when compared to its industry's average P/CF of 7.40. AP's P/CF has been as high as 5.04 and as low as -0.80, with a median of 1.45, all within the past year.

These are just a handful of the figures considered in Ampco-Pittsburgh'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 AP is an impressive value stock right now.


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