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Is AB SKF (SKFRY) Stock Undervalued 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is AB SKF (SKFRY - Free Report) . SKFRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.58 right now. For comparison, its industry sports an average P/E of 23.16. Over the last 12 months, SKFRY's Forward P/E has been as high as 15.04 and as low as 10.49, with a median of 12.20.

We also note that SKFRY holds a PEG ratio of 0.57. 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. SKFRY's PEG compares to its industry's average PEG of 0.94. SKFRY's PEG has been as high as 3.06 and as low as 0.47, with a median of 0.74, all within the past year.

Finally, we should also recognize that SKFRY has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.85. Within the past 12 months, SKFRY's P/CF has been as high as 11.33 and as low as 6.86, with a median of 8.84.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AB SKF is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKFRY feels like a great value stock at the moment.


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