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Are Investors Undervaluing American Woodmark (AMWD) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
American Woodmark (AMWD - Free Report) is a stock many investors are watching right now. AMWD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.70. This compares to its industry's average Forward P/E of 14.59. 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 10.58.
Investors should also recognize that AMWD has a P/B ratio of 1.73. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.70. AMWD's P/B has been as high as 1.81 and as low as 0.93, with a median of 1.38, over the past year.
Finally, our model also underscores that AMWD has a P/CF ratio of 7.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMWD's current P/CF looks attractive when compared to its industry's average P/CF of 13.27. Over the past 52 weeks, AMWD's P/CF has been as high as 7.87 and as low as 4.36, with a median of 6.14.
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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Are Investors Undervaluing American Woodmark (AMWD) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
American Woodmark (AMWD - Free Report) is a stock many investors are watching right now. AMWD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.70. This compares to its industry's average Forward P/E of 14.59. 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 10.58.
Investors should also recognize that AMWD has a P/B ratio of 1.73. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.70. AMWD's P/B has been as high as 1.81 and as low as 0.93, with a median of 1.38, over the past year.
Finally, our model also underscores that AMWD has a P/CF ratio of 7.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMWD's current P/CF looks attractive when compared to its industry's average P/CF of 13.27. Over the past 52 weeks, AMWD's P/CF has been as high as 7.87 and as low as 4.36, with a median of 6.14.
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.