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Are Investors Undervaluing Axos Financial (AX) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Axos Financial (AX - Free Report) . AX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.01. This compares to its industry's average Forward P/E of 24.19. Over the past 52 weeks, AX's Forward P/E has been as high as 12.11 and as low as 7.58, with a median of 9.58.
Another notable valuation metric for AX is its P/B ratio of 1.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AX's current P/B looks attractive when compared to its industry's average P/B of 3.20. Over the past year, AX's P/B has been as high as 2.06 and as low as 1.22, with a median of 1.59.
Finally, investors will want to recognize that AX has a P/CF ratio of 14.40. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AX's current P/CF looks attractive when compared to its industry's average P/CF of 16.75. Within the past 12 months, AX's P/CF has been as high as 15.02 and as low as 8.38, with a median of 11.40.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axos Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AX feels like a great value stock at the moment.
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Are Investors Undervaluing Axos Financial (AX) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Axos Financial (AX - Free Report) . AX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.01. This compares to its industry's average Forward P/E of 24.19. Over the past 52 weeks, AX's Forward P/E has been as high as 12.11 and as low as 7.58, with a median of 9.58.
Another notable valuation metric for AX is its P/B ratio of 1.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AX's current P/B looks attractive when compared to its industry's average P/B of 3.20. Over the past year, AX's P/B has been as high as 2.06 and as low as 1.22, with a median of 1.59.
Finally, investors will want to recognize that AX has a P/CF ratio of 14.40. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AX's current P/CF looks attractive when compared to its industry's average P/CF of 16.75. Within the past 12 months, AX's P/CF has been as high as 15.02 and as low as 8.38, with a median of 11.40.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axos Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AX feels like a great value stock at the moment.