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Are Investors Undervaluing American Woodmark (AMWD) 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.

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.

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 stock to keep an eye on is American Woodmark (AMWD - Free Report) . AMWD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.89 right now. For comparison, its industry sports an average P/E of 13.71. Over the past 52 weeks, AMWD's Forward P/E has been as high as 11.88 and as low as 7.28, with a median of 10.41.

Another valuation metric that we should highlight is AMWD's P/B ratio of 1.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.38. Over the past year, AMWD's P/B has been as high as 1.70 and as low as 0.93, with a median of 1.33.

Finally, investors should note that AMWD has a P/CF ratio of 7.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.92. Within the past 12 months, AMWD's P/CF has been as high as 8.19 and as low as 4.36, with a median of 5.93.

These are only a few of the key metrics included in American Woodmark'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, AMWD looks like an impressive value stock at the moment.


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