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Is Affiliated Managers Group (AMG) Stock Undervalued 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.35. This compares to its industry's average Forward P/E of 17.56. Over the past year, AMG's Forward P/E has been as high as 8.93 and as low as 6.14, with a median of 7.65.
Investors will also notice that AMG has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMG's industry has an average PEG of 1.15 right now. Within the past year, AMG's PEG has been as high as 0.71 and as low as 0.47, with a median of 0.59.
We should also highlight that AMG has a P/B ratio of 1.5. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AMG's current P/B looks attractive when compared to its industry's average P/B of 3.30. Over the past 12 months, AMG's P/B has been as high as 1.53 and as low as 1.01, with a median of 1.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AMG has a P/S ratio of 3.15. This compares to its industry's average P/S of 3.24.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.
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Is Affiliated Managers Group (AMG) Stock Undervalued 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.35. This compares to its industry's average Forward P/E of 17.56. Over the past year, AMG's Forward P/E has been as high as 8.93 and as low as 6.14, with a median of 7.65.
Investors will also notice that AMG has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMG's industry has an average PEG of 1.15 right now. Within the past year, AMG's PEG has been as high as 0.71 and as low as 0.47, with a median of 0.59.
We should also highlight that AMG has a P/B ratio of 1.5. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AMG's current P/B looks attractive when compared to its industry's average P/B of 3.30. Over the past 12 months, AMG's P/B has been as high as 1.53 and as low as 1.01, with a median of 1.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AMG has a P/S ratio of 3.15. This compares to its industry's average P/S of 3.24.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.