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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.66. This compares to its industry's average Forward P/E of 24.36. Over the past 52 weeks, AZZ's Forward P/E has been as high as 17.72 and as low as 10.40, with a median of 12.53.
AZZ is also sporting a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AZZ's industry currently sports an average PEG of 2.09. Within the past year, AZZ's PEG has been as high as 1.27 and as low as 0.89, with a median of 1.11.
Investors should also recognize that AZZ has a P/B ratio of 2.06. 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. Over the past 12 months, AZZ's P/B has been as high as 2.24 and as low as 1, with a median of 1.34.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AZZ has a P/S ratio of 1.25. This compares to its industry's average P/S of 2.69.
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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Are Investors Undervaluing AZZ (AZZ) Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.66. This compares to its industry's average Forward P/E of 24.36. Over the past 52 weeks, AZZ's Forward P/E has been as high as 17.72 and as low as 10.40, with a median of 12.53.
AZZ is also sporting a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AZZ's industry currently sports an average PEG of 2.09. Within the past year, AZZ's PEG has been as high as 1.27 and as low as 0.89, with a median of 1.11.
Investors should also recognize that AZZ has a P/B ratio of 2.06. 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. Over the past 12 months, AZZ's P/B has been as high as 2.24 and as low as 1, with a median of 1.34.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AZZ has a P/S ratio of 1.25. This compares to its industry's average P/S of 2.69.
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.