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Is Bae Systems (BAESY) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Bae Systems (BAESY - Free Report) . BAESY 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 14.57, which compares to its industry's average of 22.56. Over the past year, BAESY's Forward P/E has been as high as 17.49 and as low as 12.42, with a median of 14.61.

Investors will also notice that BAESY has a PEG ratio of 1.06. 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 2.36. Over the last 12 months, BAESY's PEG has been as high as 1.81 and as low as 0.91, with a median of 1.15.

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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