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Should Value Investors Buy Acco Brands (ACCO) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Acco Brands (ACCO - Free Report) is a stock many investors are watching right now. ACCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.05 right now. For comparison, its industry sports an average P/E of 12.69. Over the past year, ACCO's Forward P/E has been as high as 9.73 and as low as 3.59, with a median of 7.72.

Investors should also note that ACCO holds a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACCO's industry currently sports an average PEG of 1.84. Within the past year, ACCO's PEG has been as high as 1.39 and as low as 0.51, with a median of 1.11.

Investors should also recognize that ACCO has a P/B ratio of 1.10. 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 1.56. ACCO's P/B has been as high as 1.19 and as low as 0.61, with a median of 0.90, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Acco Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACCO feels like a great value stock at the moment.


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