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Should Value Investors Buy PGT Innovations (PGTI) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 PGT Innovations . PGTI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.58, which compares to its industry's average of 17.59. PGTI's Forward P/E has been as high as 19.34 and as low as 11.19, with a median of 13.35, all within the past year.

We also note that PGTI holds a PEG ratio of 1.03. 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. PGTI's PEG compares to its industry's average PEG of 1.41. PGTI's PEG has been as high as 1.20 and as low as 0.78, with a median of 0.96, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PGTI has a P/S ratio of 1.59. This compares to its industry's average P/S of 1.61.

Finally, investors will want to recognize that PGTI has a P/CF ratio of 13.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 22.92. Within the past 12 months, PGTI's P/CF has been as high as 13.92 and as low as 7.82, with a median of 9.81.

These are just a handful of the figures considered in PGT Innovations's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PGTI is an impressive value stock right now.

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