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Are Investors Undervaluing Vista Outdoor (VSTO) Right Now?
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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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Vista Outdoor (VSTO - Free Report) . VSTO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.97, while its industry has an average P/E of 29.84. Over the last 12 months, VSTO's Forward P/E has been as high as 47.08 and as low as 7.87, with a median of 11.72.
Investors should also recognize that VSTO has a P/B ratio of 3.66. Investors use the P/B ratio to look at a stock's market value versus 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 7.52. Within the past 52 weeks, VSTO's P/B has been as high as 3.66 and as low as 1.61, with a median of 2.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.07. This compares to its industry's average P/S of 2.05.
These are just a handful of the figures considered in Vista Outdoor'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 VSTO is an impressive value stock right now.
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Are Investors Undervaluing Vista Outdoor (VSTO) Right Now?
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Vista Outdoor (VSTO - Free Report) . VSTO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.97, while its industry has an average P/E of 29.84. Over the last 12 months, VSTO's Forward P/E has been as high as 47.08 and as low as 7.87, with a median of 11.72.
Investors should also recognize that VSTO has a P/B ratio of 3.66. Investors use the P/B ratio to look at a stock's market value versus 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 7.52. Within the past 52 weeks, VSTO's P/B has been as high as 3.66 and as low as 1.61, with a median of 2.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.07. This compares to its industry's average P/S of 2.05.
These are just a handful of the figures considered in Vista Outdoor'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 VSTO is an impressive value stock right now.