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Are Investors Undervaluing American Assets Trust (AAT) Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is American Assets Trust (AAT - Free Report) . AAT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.28, which compares to its industry's average of 15.03. AAT's Forward P/E has been as high as 12.35 and as low as 7.39, with a median of 10.21, all within the past year.
Investors should also recognize that AAT has a P/B ratio of 1.12. The P/B is a method of comparing a stock's market value to 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 2.32. Within the past 52 weeks, AAT's P/B has been as high as 1.53 and as low as 0.92, with a median of 1.13.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAT has a P/S ratio of 2.64. This compares to its industry's average P/S of 6.09.
Finally, we should also recognize that AAT has a P/CF ratio of 7.07. 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. AAT's current P/CF looks attractive when compared to its industry's average P/CF of 19.11. Within the past 12 months, AAT's P/CF has been as high as 10.85 and as low as 5.73, with a median of 7.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Assets Trust is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAT feels like a great value stock at the moment.
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Are Investors Undervaluing American Assets Trust (AAT) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is American Assets Trust (AAT - Free Report) . AAT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.28, which compares to its industry's average of 15.03. AAT's Forward P/E has been as high as 12.35 and as low as 7.39, with a median of 10.21, all within the past year.
Investors should also recognize that AAT has a P/B ratio of 1.12. The P/B is a method of comparing a stock's market value to 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 2.32. Within the past 52 weeks, AAT's P/B has been as high as 1.53 and as low as 0.92, with a median of 1.13.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAT has a P/S ratio of 2.64. This compares to its industry's average P/S of 6.09.
Finally, we should also recognize that AAT has a P/CF ratio of 7.07. 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. AAT's current P/CF looks attractive when compared to its industry's average P/CF of 19.11. Within the past 12 months, AAT's P/CF has been as high as 10.85 and as low as 5.73, with a median of 7.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Assets Trust is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAT feels like a great value stock at the moment.