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Are Investors Undervaluing AdvanSix (ASIX) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is AdvanSix (ASIX - Free Report) . ASIX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.50. This compares to its industry's average Forward P/E of 15.98. Over the past 52 weeks, ASIX's Forward P/E has been as high as 11.16 and as low as 6.53, with a median of 9.07.
Another notable valuation metric for ASIX is its P/B ratio of 2.46. The P/B ratio is used to compare a stock's market value with 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 2.55. Over the past year, ASIX's P/B has been as high as 2.66 and as low as 1.52, with a median of 1.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASIX has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.8.
Finally, we should also recognize that ASIX has a P/CF ratio of 7.50. 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. ASIX's current P/CF looks attractive when compared to its industry's average P/CF of 27.01. Within the past 12 months, ASIX's P/CF has been as high as 8.12 and as low as 4.89, with a median of 6.48.
Another great Chemical - Specialty stock you could consider is American Vanguard (AVD - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
American Vanguard sports a P/B ratio of 1.90 as well; this compares to its industry's price-to-book ratio of 2.55. In the past 52 weeks, AVD's P/B has been as high as 1.90, as low as 1.18, with a median of 1.34.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix and American Vanguard are likely undervalued currently. And when considering the strength of its earnings outlook, ASIX and AVD sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing AdvanSix (ASIX) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is AdvanSix (ASIX - Free Report) . ASIX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.50. This compares to its industry's average Forward P/E of 15.98. Over the past 52 weeks, ASIX's Forward P/E has been as high as 11.16 and as low as 6.53, with a median of 9.07.
Another notable valuation metric for ASIX is its P/B ratio of 2.46. The P/B ratio is used to compare a stock's market value with 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 2.55. Over the past year, ASIX's P/B has been as high as 2.66 and as low as 1.52, with a median of 1.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASIX has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.8.
Finally, we should also recognize that ASIX has a P/CF ratio of 7.50. 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. ASIX's current P/CF looks attractive when compared to its industry's average P/CF of 27.01. Within the past 12 months, ASIX's P/CF has been as high as 8.12 and as low as 4.89, with a median of 6.48.
Another great Chemical - Specialty stock you could consider is American Vanguard (AVD - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
American Vanguard sports a P/B ratio of 1.90 as well; this compares to its industry's price-to-book ratio of 2.55. In the past 52 weeks, AVD's P/B has been as high as 1.90, as low as 1.18, with a median of 1.34.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix and American Vanguard are likely undervalued currently. And when considering the strength of its earnings outlook, ASIX and AVD sticks out as one of the market's strongest value stocks.