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Are Investors Undervaluing Academy Sports and Outdoors (ASO) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that ASO holds a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASO's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, ASO's PEG has been as high as 0.88 and as low as 0.45, with a median of 0.62.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASO has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.81.
Investors could also keep in mind MasterCraft Boat (MCFT - Free Report) , an Leisure and Recreation Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
MasterCraft Boat sports a P/B ratio of 1.88 as well; this compares to its industry's price-to-book ratio of 12.22. In the past 52 weeks, MCFT's P/B has been as high as 3.87, as low as 1.76, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Academy Sports and Outdoors and MasterCraft Boat are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASO and MCFT feels like a great value stock at the moment.
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Are Investors Undervaluing Academy Sports and Outdoors (ASO) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that ASO holds a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASO's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, ASO's PEG has been as high as 0.88 and as low as 0.45, with a median of 0.62.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASO has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.81.
Investors could also keep in mind MasterCraft Boat (MCFT - Free Report) , an Leisure and Recreation Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
MasterCraft Boat sports a P/B ratio of 1.88 as well; this compares to its industry's price-to-book ratio of 12.22. In the past 52 weeks, MCFT's P/B has been as high as 3.87, as low as 1.76, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Academy Sports and Outdoors and MasterCraft Boat are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASO and MCFT feels like a great value stock at the moment.