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Should Value Investors Buy American Woodmark (AMWD) Stock?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 American Woodmark (AMWD - Free Report) . AMWD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.87 right now. For comparison, its industry sports an average P/E of 14.88. 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 10.65.
We should also highlight that AMWD has a P/B ratio of 1.76. The P/B ratio pits a stock's market value against 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. Within the past 52 weeks, AMWD's P/B has been as high as 1.81 and as low as 0.93, with a median of 1.39.
Finally, our model also underscores that AMWD has a P/CF ratio of 7.68. 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 13.26. AMWD's P/CF has been as high as 7.87 and as low as 4.36, with a median of 6.24, all within the past year.
These are just a handful of the figures considered in American Woodmark'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 AMWD is an impressive value stock right now.
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Should Value Investors Buy American Woodmark (AMWD) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 American Woodmark (AMWD - Free Report) . AMWD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.87 right now. For comparison, its industry sports an average P/E of 14.88. 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 10.65.
We should also highlight that AMWD has a P/B ratio of 1.76. The P/B ratio pits a stock's market value against 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. Within the past 52 weeks, AMWD's P/B has been as high as 1.81 and as low as 0.93, with a median of 1.39.
Finally, our model also underscores that AMWD has a P/CF ratio of 7.68. 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 13.26. AMWD's P/CF has been as high as 7.87 and as low as 4.36, with a median of 6.24, all within the past year.
These are just a handful of the figures considered in American Woodmark'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 AMWD is an impressive value stock right now.