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Are Investors Undervaluing AdvanSix (ASIX) 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.
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 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.
AdvanSix (ASIX - Free Report) is a stock many investors are watching right now. ASIX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.46, while its industry has an average P/E of 15.61. Over the past year, ASIX's Forward P/E has been as high as 9.88 and as low as 4.10, with a median of 5.82.
We should also highlight that ASIX has a P/B ratio of 1.64. 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. This stock's P/B looks attractive against its industry's average P/B of 4.50. Over the past year, ASIX's P/B has been as high as 2.66 and as low as 1.21, with a median of 1.56.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.59. This compares to its industry's average P/S of 1.32.
Finally, our model also underscores that ASIX has a P/CF ratio of 5.33. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.45. Over the past year, ASIX's P/CF has been as high as 8.12 and as low as 3.48, with a median of 4.95.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix is likely undervalued currently. And when considering the strength of its earnings outlook, ASIX sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing AdvanSix (ASIX) Right Now?
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.
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 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.
AdvanSix (ASIX - Free Report) is a stock many investors are watching right now. ASIX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.46, while its industry has an average P/E of 15.61. Over the past year, ASIX's Forward P/E has been as high as 9.88 and as low as 4.10, with a median of 5.82.
We should also highlight that ASIX has a P/B ratio of 1.64. 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. This stock's P/B looks attractive against its industry's average P/B of 4.50. Over the past year, ASIX's P/B has been as high as 2.66 and as low as 1.21, with a median of 1.56.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.59. This compares to its industry's average P/S of 1.32.
Finally, our model also underscores that ASIX has a P/CF ratio of 5.33. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.45. Over the past year, ASIX's P/CF has been as high as 8.12 and as low as 3.48, with a median of 4.95.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix is likely undervalued currently. And when considering the strength of its earnings outlook, ASIX sticks out at as one of the market's strongest value stocks.