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Are Investors Undervaluing AAC Technologies (AACAY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

AAC Technologies (AACAY - Free Report) is a stock many investors are watching right now. AACAY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.13, which compares to its industry's average of 23.21. Over the last 12 months, AACAY's Forward P/E has been as high as 25.11 and as low as 14.02, with a median of 17.74.

We should also highlight that AACAY has a P/B ratio of 2.09. 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. This stock's P/B looks solid versus its industry's average P/B of 3.33. Over the past year, AACAY's P/B has been as high as 2.55 and as low as 1.37, with a median of 1.82.

TDK (TTDKY - Free Report) may be another strong Electronics - Miscellaneous Components stock to add to your shortlist. TTDKY is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

TDK is trading at a forward earnings multiple of 19.97 at the moment, with a PEG ratio of 1.50. This compares to its industry's average P/E of 23.21 and average PEG ratio of 1.83.

Over the last 12 months, TTDKY's P/E has been as high as 92.67, as low as 11.94, with a median of 16.64, and its PEG ratio has been as high as 3.58, as low as 0.51, with a median of 0.91.

TDK also has a P/B ratio of 2.25 compared to its industry's price-to-book ratio of 3.33. Over the past year, its P/B ratio has been as high as 2.34, as low as 1.38, with a median of 1.89.

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


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