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Is American Woodmark (AMWD) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.83. This compares to its industry's average Forward P/E of 13.66. 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 10.66.

Another notable valuation metric for AMWD is its P/B ratio of 1.60. 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 attractive against its industry's average P/B of 3.45. AMWD's P/B has been as high as 1.81 and as low as 0.93, with a median of 1.42, over the past year.

Finally, we should also recognize that AMWD has a P/CF ratio of 6.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMWD's P/CF compares to its industry's average P/CF of 12.14. Over the past year, AMWD's P/CF has been as high as 7.87 and as low as 4.36, with a median of 6.36.

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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