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Are These Industrial Products Stocks 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 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 to watch right now is AGCO (AGCO - Free Report) . AGCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.73. This compares to its industry's average Forward P/E of 16.20. AGCO's Forward P/E has been as high as 20.46 and as low as -1,270.93, with a median of 13.61, all within the past year.
We also note that AGCO holds a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AGCO's industry currently sports an average PEG of 1.28. Within the past year, AGCO's PEG has been as high as 1.38 and as low as -66.66, with a median of 0.72.
Investors should also recognize that AGCO has a P/B ratio of 2.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AGCO's current P/B looks attractive when compared to its industry's average P/B of 5.69. AGCO's P/B has been as high as 3.77 and as low as 2.57, with a median of 3.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGCO has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.3.
Finally, we should also recognize that AGCO has a P/CF ratio of 9.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AGCO's current P/CF looks attractive when compared to its industry's average P/CF of 16.32. AGCO's P/CF has been as high as 15.56 and as low as 7.99, with a median of 9.93, all within the past year.
If you're looking for another solid Manufacturing - Farm Equipment value stock, take a look at Titan International . TWI is a # 2 (Buy) stock with a Value score of A.
Additionally, Titan International has a P/B ratio of 3.77 while its industry's price-to-book ratio sits at 5.69. For TWI, this valuation metric has been as high as 4.28, as low as 2.39, with a median of 2.94 over the past year.
These are just a handful of the figures considered in AGCO and Titan International'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 AGCO and TWI is an impressive value stock right now.
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Are These Industrial Products Stocks Undervalued Right Now?
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 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 to watch right now is AGCO (AGCO - Free Report) . AGCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.73. This compares to its industry's average Forward P/E of 16.20. AGCO's Forward P/E has been as high as 20.46 and as low as -1,270.93, with a median of 13.61, all within the past year.
We also note that AGCO holds a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AGCO's industry currently sports an average PEG of 1.28. Within the past year, AGCO's PEG has been as high as 1.38 and as low as -66.66, with a median of 0.72.
Investors should also recognize that AGCO has a P/B ratio of 2.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AGCO's current P/B looks attractive when compared to its industry's average P/B of 5.69. AGCO's P/B has been as high as 3.77 and as low as 2.57, with a median of 3.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGCO has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.3.
Finally, we should also recognize that AGCO has a P/CF ratio of 9.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AGCO's current P/CF looks attractive when compared to its industry's average P/CF of 16.32. AGCO's P/CF has been as high as 15.56 and as low as 7.99, with a median of 9.93, all within the past year.
If you're looking for another solid Manufacturing - Farm Equipment value stock, take a look at Titan International . TWI is a # 2 (Buy) stock with a Value score of A.
Additionally, Titan International has a P/B ratio of 3.77 while its industry's price-to-book ratio sits at 5.69. For TWI, this valuation metric has been as high as 4.28, as low as 2.39, with a median of 2.94 over the past year.
These are just a handful of the figures considered in AGCO and Titan International'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 AGCO and TWI is an impressive value stock right now.