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Are Investors Undervaluing American Vanguard (AVD) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is American Vanguard (AVD - Free Report) . AVD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.92, while its industry has an average P/E of 24.31. AVD's Forward P/E has been as high as 37.83 and as low as 7.12, with a median of 15.05, 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. AVD has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.73.

Finally, our model also underscores that AVD has a P/CF ratio of 10.21. 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. AVD's P/CF compares to its industry's average P/CF of 12.89. Over the past 52 weeks, AVD's P/CF has been as high as 14.09 and as low as 8.13, with a median of 10.68.

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


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