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Should Value Investors Buy Bae Systems (BAESY) Stock?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Bae Systems (BAESY - Free Report) . BAESY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.84, which compares to its industry's average of 22.42. BAESY's Forward P/E has been as high as 16.50 and as low as 11.91, with a median of 13.85, all within the past year.
Investors will also notice that BAESY has a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAESY's PEG compares to its industry's average PEG of 2.38. Over the last 12 months, BAESY's PEG has been as high as 3.65 and as low as 0.91, with a median of 1.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Bae Systems is likely undervalued currently. And when considering the strength of its earnings outlook, BAESY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Bae Systems (BAESY) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Bae Systems (BAESY - Free Report) . BAESY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.84, which compares to its industry's average of 22.42. BAESY's Forward P/E has been as high as 16.50 and as low as 11.91, with a median of 13.85, all within the past year.
Investors will also notice that BAESY has a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAESY's PEG compares to its industry's average PEG of 2.38. Over the last 12 months, BAESY's PEG has been as high as 3.65 and as low as 0.91, with a median of 1.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Bae Systems is likely undervalued currently. And when considering the strength of its earnings outlook, BAESY sticks out at as one of the market's strongest value stocks.