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Is ANDRITZ AG (ADRZY) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is ANDRITZ AG (ADRZY - Free Report) . ADRZY 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 12.98, while its industry has an average P/E of 17.50. Over the past 52 weeks, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 12.15.
We also note that ADRZY holds a PEG ratio of 1.61. 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. ADRZY's PEG compares to its industry's average PEG of 1.77.
Another valuation metric that we should highlight is ADRZY's P/B ratio of 3.58. 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. ADRZY's current P/B looks attractive when compared to its industry's average P/B of 5.98. Within the past 52 weeks, ADRZY's P/B has been as high as 3.59 and as low as 2.50, with a median of 2.93.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ADRZY has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.49.
Finally, investors will want to recognize that ADRZY has a P/CF ratio of 9.80. 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. ADRZY's P/CF compares to its industry's average P/CF of 14.06. Over the past year, ADRZY's P/CF has been as high as 9.84 and as low as 6.88, with a median of 8.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ANDRITZ AG is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRZY feels like a great value stock at the moment.
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Is ANDRITZ AG (ADRZY) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is ANDRITZ AG (ADRZY - Free Report) . ADRZY 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 12.98, while its industry has an average P/E of 17.50. Over the past 52 weeks, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 12.15.
We also note that ADRZY holds a PEG ratio of 1.61. 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. ADRZY's PEG compares to its industry's average PEG of 1.77.
Another valuation metric that we should highlight is ADRZY's P/B ratio of 3.58. 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. ADRZY's current P/B looks attractive when compared to its industry's average P/B of 5.98. Within the past 52 weeks, ADRZY's P/B has been as high as 3.59 and as low as 2.50, with a median of 2.93.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ADRZY has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.49.
Finally, investors will want to recognize that ADRZY has a P/CF ratio of 9.80. 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. ADRZY's P/CF compares to its industry's average P/CF of 14.06. Over the past year, ADRZY's P/CF has been as high as 9.84 and as low as 6.88, with a median of 8.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ANDRITZ AG is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRZY feels like a great value stock at the moment.