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Is North American Construction Group (NOA) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

North American Construction Group (NOA - Free Report) is a stock many investors are watching right now. NOA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 15.17. NOA's Forward P/E has been as high as 10.39 and as low as 6.03, with a median of 8.06, all within the past year.

Another notable valuation metric for NOA is its P/B ratio of 1.97. 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 2.10. Over the past 12 months, NOA's P/B has been as high as 2.56 and as low as 1.52, with a median of 2.02.

Finally, investors will want to recognize that NOA has a P/CF ratio of 3.64. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.65. Over the past year, NOA's P/CF has been as high as 5.19 and as low as 2.73, with a median of 3.82.

Value investors will likely look at more than just these metrics, but the above data helps show that North American Construction Group is likely undervalued currently. And when considering the strength of its earnings outlook, NOA sticks out at as one of the market's strongest value stocks.


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