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Should Value Investors Buy American Woodmark (AMWD) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.69. This compares to its industry's average Forward P/E of 14.77. AMWD's Forward P/E has been as high as 20.29 and as low as 4.56, with a median of 13.37, all within the past year.
We also note that AMWD holds a PEG ratio of 0.74. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMWD's PEG compares to its industry's average PEG of 1.08. Over the past 52 weeks, AMWD's PEG has been as high as 1.58 and as low as 0.51, with a median of 1.47.
Another notable valuation metric for AMWD is its P/B ratio of 2.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.16. AMWD's P/B has been as high as 2.88 and as low as 0.88, with a median of 1.99, over the past year.
Finally, investors will want to recognize that AMWD has a P/CF ratio of 8.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMWD's current P/CF looks attractive when compared to its industry's average P/CF of 9.37. AMWD's P/CF has been as high as 10.74 and as low as 3.31, with a median of 7.65, all within the past year.
These are only a few of the key metrics included in American Woodmark'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, AMWD looks like an impressive value stock at the moment.
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Should Value Investors Buy American Woodmark (AMWD) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.69. This compares to its industry's average Forward P/E of 14.77. AMWD's Forward P/E has been as high as 20.29 and as low as 4.56, with a median of 13.37, all within the past year.
We also note that AMWD holds a PEG ratio of 0.74. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMWD's PEG compares to its industry's average PEG of 1.08. Over the past 52 weeks, AMWD's PEG has been as high as 1.58 and as low as 0.51, with a median of 1.47.
Another notable valuation metric for AMWD is its P/B ratio of 2.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.16. AMWD's P/B has been as high as 2.88 and as low as 0.88, with a median of 1.99, over the past year.
Finally, investors will want to recognize that AMWD has a P/CF ratio of 8.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMWD's current P/CF looks attractive when compared to its industry's average P/CF of 9.37. AMWD's P/CF has been as high as 10.74 and as low as 3.31, with a median of 7.65, all within the past year.
These are only a few of the key metrics included in American Woodmark'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, AMWD looks like an impressive value stock at the moment.