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Is Vista Outdoor (VSTO) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Vista Outdoor (VSTO - Free Report) . VSTO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for VSTO is its P/B ratio of 2.84. 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 attractive against its industry's average P/B of 7.52. VSTO's P/B has been as high as 3.21 and as low as 0.78, with a median of 2.13, over the past year.
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. VSTO has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.07.
These are only a few of the key metrics included in Vista Outdoor'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, VSTO looks like an impressive value stock at the moment.
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Is Vista Outdoor (VSTO) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Vista Outdoor (VSTO - Free Report) . VSTO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for VSTO is its P/B ratio of 2.84. 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 attractive against its industry's average P/B of 7.52. VSTO's P/B has been as high as 3.21 and as low as 0.78, with a median of 2.13, over the past year.
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. VSTO has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.07.
These are only a few of the key metrics included in Vista Outdoor'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, VSTO looks like an impressive value stock at the moment.