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Are These Finance Stocks 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Ashford (AINC - Free Report) . AINC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.08. This compares to its industry's average Forward P/E of 12.06. Over the last 12 months, AINC's Forward P/E has been as high as 9.95 and as low as 1.89, with a median of 4.16.

Finally, our model also underscores that AINC has a P/CF ratio of 4.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AINC's P/CF compares to its industry's average P/CF of 14.97. Within the past 12 months, AINC's P/CF has been as high as 28.24 and as low as -0.16, with a median of 5.17.

Atlas may be another strong Financial - Investment Management stock to add to your shortlist. ATCO is a # 2 (Buy) stock with a Value grade of A.

Atlas is currently trading with a Forward P/E ratio of 7.55 while its PEG ratio sits at 0.27. Both of the company's metrics compare favorably to its industry's average P/E of 12.06 and average PEG ratio of 0.89.

ATCO's Forward P/E has been as high as 12.69 and as low as 7.53, with a median of 10.12. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.27, with a median of 0.67.

Atlas also has a P/B ratio of 1 compared to its industry's price-to-book ratio of 2.88. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.67, with a median of 0.93.

Value investors will likely look at more than just these metrics, but the above data helps show that Ashford and Atlas are likely undervalued currently. And when considering the strength of its earnings outlook, AINC and ATCO sticks out as one of the market's strongest value stocks.


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