We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 stock to keep an eye on is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 15.11. Over the past year, AHEXY's Forward P/E has been as high as 12.18 and as low as 6.87, with a median of 9.80.
Investors will also notice that AHEXY has a PEG ratio of 0.98. 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. AHEXY's industry currently sports an average PEG of 1.63. Within the past year, AHEXY's PEG has been as high as 4.56 and as low as 0.73, with a median of 1.09.
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. AHEXY has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.54.
Finally, investors should note that AHEXY has a P/CF ratio of 7.61. 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. AHEXY's P/CF compares to its industry's average P/CF of 18.63. AHEXY's P/CF has been as high as 9.89 and as low as 6.32, with a median of 8.24, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHEXY feels like a great value stock at the moment.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Adecco (AHEXY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 stock to keep an eye on is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 15.11. Over the past year, AHEXY's Forward P/E has been as high as 12.18 and as low as 6.87, with a median of 9.80.
Investors will also notice that AHEXY has a PEG ratio of 0.98. 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. AHEXY's industry currently sports an average PEG of 1.63. Within the past year, AHEXY's PEG has been as high as 4.56 and as low as 0.73, with a median of 1.09.
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. AHEXY has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.54.
Finally, investors should note that AHEXY has a P/CF ratio of 7.61. 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. AHEXY's P/CF compares to its industry's average P/CF of 18.63. AHEXY's P/CF has been as high as 9.89 and as low as 6.32, with a median of 8.24, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHEXY feels like a great value stock at the moment.