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Should Value Investors Buy Associated British Foods (ASBFY) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Associated British Foods (ASBFY - Free Report) . ASBFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.28. This compares to its industry's average Forward P/E of 15.47. ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 13.70, all within the past year.
ASBFY is also sporting a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASBFY's PEG compares to its industry's average PEG of 1.89. Over the past 52 weeks, ASBFY's PEG has been as high as 4.24 and as low as 0.66, with a median of 2.10.
Another notable valuation metric for ASBFY is its P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus 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 2.21. Over the past year, ASBFY's P/B has been as high as 1.56 and as low as 0.75, with a median of 1.29.
These are only a few of the key metrics included in Associated British Foods'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, ASBFY looks like an impressive value stock at the moment.
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Should Value Investors Buy Associated British Foods (ASBFY) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Associated British Foods (ASBFY - Free Report) . ASBFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.28. This compares to its industry's average Forward P/E of 15.47. ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 13.70, all within the past year.
ASBFY is also sporting a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASBFY's PEG compares to its industry's average PEG of 1.89. Over the past 52 weeks, ASBFY's PEG has been as high as 4.24 and as low as 0.66, with a median of 2.10.
Another notable valuation metric for ASBFY is its P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus 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 2.21. Over the past year, ASBFY's P/B has been as high as 1.56 and as low as 0.75, with a median of 1.29.
These are only a few of the key metrics included in Associated British Foods'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, ASBFY looks like an impressive value stock at the moment.