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Are Investors Undervaluing Moog (MOG.A) 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 Moog (MOG.A - Free Report) . MOG.A is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.47, which compares to its industry's average of 19.07. Over the past 52 weeks, MOG.A's Forward P/E has been as high as 15.80 and as low as 12.25, with a median of 13.98.

We should also highlight that MOG.A has a P/B ratio of 1.66. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.77. Over the past 12 months, MOG.A's P/B has been as high as 2.02 and as low as 1.55, with a median of 1.80.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MOG.A has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.83.

Finally, we should also recognize that MOG.A has a P/CF ratio of 9.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MOG.A's current P/CF looks attractive when compared to its industry's average P/CF of 14.38. Within the past 12 months, MOG.A's P/CF has been as high as 19.07 and as low as 8.84, with a median of 10.34.

These are only a few of the key metrics included in Moog's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MOG.A looks like an impressive value stock at the moment.


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