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Is Andritz (ADRZY) Stock Undervalued Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Andritz (ADRZY - Free Report) . ADRZY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.68 right now. For comparison, its industry sports an average P/E of 21.64. Over the last 12 months, ADRZY's Forward P/E has been as high as 14.73 and as low as 8.36, with a median of 10.92.

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. ADRZY has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.35.

Investors could also keep in mind Horiba (HRIBF - Free Report) , an Industrial Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Additionally, Horiba has a P/B ratio of 1.09 while its industry's price-to-book ratio sits at 11.51. For HRIBF, this valuation metric has been as high as 1.35, as low as 1.05, with a median of 1.08 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Andritz and Horiba are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRZY and HRIBF feels like a great value stock at the moment.


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