Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
Altra Industrial Motion (AIMC - Free Report) is a stock many investors are watching right now. AIMC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.89. This compares to its industry's average Forward P/E of 18.88. Over the past year, AIMC's Forward P/E has been as high as 24.54 and as low as 13.75, with a median of 18.94.
We should also highlight that AIMC has a P/B ratio of 2.73. The P/B ratio pits a stock's market value against 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 5.19. Over the past year, AIMC's P/B has been as high as 3.94 and as low as 2.70, with a median of 3.42.
Finally, we should also recognize that AIMC has a P/CF ratio of 12.22. 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. AIMC's current P/CF looks attractive when compared to its industry's average P/CF of 16.87. Within the past 12 months, AIMC's P/CF has been as high as 20.06 and as low as 12.09, with a median of 15.14.
These are just a handful of the figures considered in Altra Industrial Motion's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AIMC is an impressive value stock right now.