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Should Value Investors Buy Avantor (AVTR) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 stock to keep an eye on is Avantor (AVTR - Free Report) . AVTR 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 12.27, which compares to its industry's average of 15.89. Over the past 52 weeks, AVTR's Forward P/E has been as high as 23.73 and as low as 10.26, with a median of 14.91.

Another valuation metric that we should highlight is AVTR's P/B ratio of 1.36. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.09. Over the past 12 months, AVTR's P/B has been as high as 3.46 and as low as 1.21, with a median of 1.85.

Finally, investors will want to recognize that AVTR has a P/CF ratio of 7.73. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.47. AVTR's P/CF has been as high as 24.46 and as low as 6.91, with a median of 9.79, 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 Avantor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AVTR feels like a great value stock at the moment.


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