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Is Afya (AFYA) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Afya (AFYA - Free Report) . AFYA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.44. This compares to its industry's average Forward P/E of 30.03. Over the past year, AFYA's Forward P/E has been as high as 24.98 and as low as 3.04, with a median of 15.61.

Finally, investors should note that AFYA has a P/CF ratio of 14.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 37.81. AFYA's P/CF has been as high as 34.95 and as low as 12.49, with a median of 19.88, all within the past year.

Investors could also keep in mind Stride (LRN - Free Report) , an Schools stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Stride is trading at a forward earnings multiple of 14.64 at the moment, with a PEG ratio of 0.73. This compares to its industry's average P/E of 30.03 and average PEG ratio of 1.99.

LRN's Forward P/E has been as high as 23.22 and as low as 12.26, with a median of 15.80. During the same time period, its PEG ratio has been as high as 1.16, as low as 0.61, with a median of 0.79.

Stride sports a P/B ratio of 2.15 as well; this compares to its industry's price-to-book ratio of 1.63. In the past 52 weeks, LRN's P/B has been as high as 2.24, as low as 1.42, with a median of 1.94.

These are just a handful of the figures considered in Afya and Stride'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 AFYA and LRN is an impressive value stock right now.


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