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Should Value Investors Buy Affiliated Managers Group (AMG) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.14. This compares to its industry's average Forward P/E of 13.64. Over the last 12 months, AMG's Forward P/E has been as high as 8.14 and as low as 3.27, with a median of 5.77.
Another valuation metric that we should highlight is AMG's P/B ratio of 1.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Within the past 52 weeks, AMG's P/B has been as high as 1.49 and as low as 0.64, with a median of 1.01.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMG has a P/S ratio of 2.48. This compares to its industry's average P/S of 2.97.
Finally, we should also recognize that AMG has a P/CF ratio of 15.17. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 36.66. Over the past 52 weeks, AMG's P/CF has been as high as 24.02 and as low as 7.40, with a median of 10.31.
These are just a handful of the figures considered in Affiliated Managers Group'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 AMG is an impressive value stock right now.
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Should Value Investors Buy Affiliated Managers Group (AMG) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.14. This compares to its industry's average Forward P/E of 13.64. Over the last 12 months, AMG's Forward P/E has been as high as 8.14 and as low as 3.27, with a median of 5.77.
Another valuation metric that we should highlight is AMG's P/B ratio of 1.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Within the past 52 weeks, AMG's P/B has been as high as 1.49 and as low as 0.64, with a median of 1.01.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMG has a P/S ratio of 2.48. This compares to its industry's average P/S of 2.97.
Finally, we should also recognize that AMG has a P/CF ratio of 15.17. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 36.66. Over the past 52 weeks, AMG's P/CF has been as high as 24.02 and as low as 7.40, with a median of 10.31.
These are just a handful of the figures considered in Affiliated Managers Group'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 AMG is an impressive value stock right now.