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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
AZZ (AZZ - Free Report) is a stock many investors are watching right now. AZZ 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 16.37, which compares to its industry's average of 25.25. Over the past 52 weeks, AZZ's Forward P/E has been as high as 17.72 and as low as 9.48, with a median of 11.96.
AZZ is also sporting a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZZ's industry has an average PEG of 2.17 right now. Over the past 52 weeks, AZZ's PEG has been as high as 1.27 and as low as 0.89, with a median of 1.07.
Investors should also recognize that AZZ has a P/B ratio of 2.10. 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. AZZ's current P/B looks attractive when compared to its industry's average P/B of 3.66. Within the past 52 weeks, AZZ's P/B has been as high as 2.24 and as low as 1, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AZZ has a P/S ratio of 1.27. This compares to its industry's average P/S of 2.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AZZ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AZZ feels like a great value stock at the moment.
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Is AZZ (AZZ) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
AZZ (AZZ - Free Report) is a stock many investors are watching right now. AZZ 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 16.37, which compares to its industry's average of 25.25. Over the past 52 weeks, AZZ's Forward P/E has been as high as 17.72 and as low as 9.48, with a median of 11.96.
AZZ is also sporting a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZZ's industry has an average PEG of 2.17 right now. Over the past 52 weeks, AZZ's PEG has been as high as 1.27 and as low as 0.89, with a median of 1.07.
Investors should also recognize that AZZ has a P/B ratio of 2.10. 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. AZZ's current P/B looks attractive when compared to its industry's average P/B of 3.66. Within the past 52 weeks, AZZ's P/B has been as high as 2.24 and as low as 1, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AZZ has a P/S ratio of 1.27. This compares to its industry's average P/S of 2.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AZZ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AZZ feels like a great value stock at the moment.