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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 18.04 right now. For comparison, its industry sports an average P/E of 22.11. Over the past year, AZZ's Forward P/E has been as high as 18.66 and as low as 12.87, with a median of 15.27.
We also note that AZZ holds a PEG ratio of 1.03. 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. AZZ's industry has an average PEG of 2.14 right now. Over the past 52 weeks, AZZ's PEG has been as high as 1.27 and as low as 0.92, with a median of 1.07.
Another notable valuation metric for AZZ is its P/B ratio of 2.78. The P/B ratio pits a stock's market value against 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 4.63. AZZ's P/B has been as high as 2.87 and as low as 2.16, with a median of 2.48, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AZZ has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.3.
Finally, investors should note that AZZ has a P/CF ratio of 9.56. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.68. Over the past 52 weeks, AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35.
These are just a handful of the figures considered in AZZ's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AZZ is an impressive value stock right now.
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Are Investors Undervaluing AZZ (AZZ) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 18.04 right now. For comparison, its industry sports an average P/E of 22.11. Over the past year, AZZ's Forward P/E has been as high as 18.66 and as low as 12.87, with a median of 15.27.
We also note that AZZ holds a PEG ratio of 1.03. 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. AZZ's industry has an average PEG of 2.14 right now. Over the past 52 weeks, AZZ's PEG has been as high as 1.27 and as low as 0.92, with a median of 1.07.
Another notable valuation metric for AZZ is its P/B ratio of 2.78. The P/B ratio pits a stock's market value against 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 4.63. AZZ's P/B has been as high as 2.87 and as low as 2.16, with a median of 2.48, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AZZ has a P/S ratio of 2.11. This compares to its industry's average P/S of 2.3.
Finally, investors should note that AZZ has a P/CF ratio of 9.56. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.68. Over the past 52 weeks, AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35.
These are just a handful of the figures considered in AZZ's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AZZ is an impressive value stock right now.