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Should Value Investors Buy Moog (MOG.A) Stock?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Moog (MOG.A - Free Report) . MOG.A is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.54. This compares to its industry's average Forward P/E of 20.81. Over the past year, MOG.A's Forward P/E has been as high as 16.89 and as low as 11.82, with a median of 14.51.

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 1.03. This compares to its industry's average P/S of 2.12.

Finally, investors will want to recognize that MOG.A has a P/CF ratio of 13.34. 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. MOG.A's P/CF compares to its industry's average P/CF of 14.74. Over the past year, MOG.A's P/CF has been as high as 13.48 and as low as 9.09, with a median of 11.20.

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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