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Are Investors Undervaluing Andritz (ADRZY) 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 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.

Andritz (ADRZY - Free Report) is a stock many investors are watching right now. ADRZY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.47 right now. For comparison, its industry sports an average P/E of 24.22. Over the past 52 weeks, ADRZY's Forward P/E has been as high as 11.94 and as low as 7.77, with a median of 10.10.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADRZY has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.19.

Value investors will likely look at more than just these metrics, but the above data helps show that Andritz is likely undervalued currently. And when considering the strength of its earnings outlook, ADRZY sticks out at as one of the market's strongest value stocks.


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