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Is Andritz (ADRZY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Andritz (ADRZY - Free Report) . ADRZY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.21. This compares to its industry's average Forward P/E of 24.32. Over the past year, ADRZY's Forward P/E has been as high as 11.94 and as low as 7.77, with a median of 10.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRZY has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.13.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Andritz is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRZY feels like a great value stock at the moment.


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