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Should Value Investors Buy Array Technologies (ARRY) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Array Technologies (ARRY - Free Report) . ARRY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 13.33. ARRY's Forward P/E has been as high as 12.17 and as low as 5.23, with a median of 7.81, all within the past year.
Investors will also notice that ARRY has a PEG ratio of 0.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARRY's industry has an average PEG of 0.60 right now. Over the last 12 months, ARRY's PEG has been as high as 1.22 and as low as 0.28, with a median of 0.67.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARRY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.12.
Finally, investors will want to recognize that ARRY has a P/CF ratio of 10.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.66. ARRY's P/CF has been as high as 21.25 and as low as 6.15, with a median of 11.64, all within the past year.
These are only a few of the key metrics included in Array Technologies'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, ARRY looks like an impressive value stock at the moment.
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Should Value Investors Buy Array Technologies (ARRY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Array Technologies (ARRY - Free Report) . ARRY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 13.33. ARRY's Forward P/E has been as high as 12.17 and as low as 5.23, with a median of 7.81, all within the past year.
Investors will also notice that ARRY has a PEG ratio of 0.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARRY's industry has an average PEG of 0.60 right now. Over the last 12 months, ARRY's PEG has been as high as 1.22 and as low as 0.28, with a median of 0.67.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARRY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.12.
Finally, investors will want to recognize that ARRY has a P/CF ratio of 10.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.66. ARRY's P/CF has been as high as 21.25 and as low as 6.15, with a median of 11.64, all within the past year.
These are only a few of the key metrics included in Array Technologies'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, ARRY looks like an impressive value stock at the moment.