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Should Value Investors Buy ABM Industries (ABM) Stock?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is ABM Industries (ABM - Free Report) . ABM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.33 right now. For comparison, its industry sports an average P/E of 30.19. ABM's Forward P/E has been as high as 61.52 and as low as 11.14, with a median of 13.31, all within the past year.
Finally, our model also underscores that ABM has a P/CF ratio of 14.68. 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. This stock's P/CF looks attractive against its industry's average P/CF of 36.95. ABM's P/CF has been as high as 16.87 and as low as 6.15, with a median of 13.25, all within the past year.
These are just a handful of the figures considered in ABM Industries'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 ABM is an impressive value stock right now.
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Should Value Investors Buy ABM Industries (ABM) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is ABM Industries (ABM - Free Report) . ABM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.33 right now. For comparison, its industry sports an average P/E of 30.19. ABM's Forward P/E has been as high as 61.52 and as low as 11.14, with a median of 13.31, all within the past year.
Finally, our model also underscores that ABM has a P/CF ratio of 14.68. 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. This stock's P/CF looks attractive against its industry's average P/CF of 36.95. ABM's P/CF has been as high as 16.87 and as low as 6.15, with a median of 13.25, all within the past year.
These are just a handful of the figures considered in ABM Industries'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 ABM is an impressive value stock right now.