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Are Investors Undervaluing Mayville Engineering (MEC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
One stock to keep an eye on is Mayville Engineering (MEC - Free Report) . MEC 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 12.37. This compares to its industry's average Forward P/E of 16.53. MEC's Forward P/E has been as high as 49.70 and as low as 11.16, with a median of 19.39, all within the past year.
We should also highlight that MEC has a P/B ratio of 0.99. 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. This stock's P/B looks solid versus its industry's average P/B of 2.95. Over the past 12 months, MEC's P/B has been as high as 1.89 and as low as 0.99, with a median of 1.41.
Finally, we should also recognize that MEC has a P/CF ratio of 4.06. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.96. Over the past 52 weeks, MEC's P/CF has been as high as 9.30 and as low as 4.05, with a median of 7.16.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mayville Engineering is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEC feels like a great value stock at the moment.
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Are Investors Undervaluing Mayville Engineering (MEC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
One stock to keep an eye on is Mayville Engineering (MEC - Free Report) . MEC 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 12.37. This compares to its industry's average Forward P/E of 16.53. MEC's Forward P/E has been as high as 49.70 and as low as 11.16, with a median of 19.39, all within the past year.
We should also highlight that MEC has a P/B ratio of 0.99. 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. This stock's P/B looks solid versus its industry's average P/B of 2.95. Over the past 12 months, MEC's P/B has been as high as 1.89 and as low as 0.99, with a median of 1.41.
Finally, we should also recognize that MEC has a P/CF ratio of 4.06. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.96. Over the past 52 weeks, MEC's P/CF has been as high as 9.30 and as low as 4.05, with a median of 7.16.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mayville Engineering is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEC feels like a great value stock at the moment.