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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Atkore International Group Inc. (ATKR - Free Report) . ATKR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.95 right now. For comparison, its industry sports an average P/E of 7.41. ATKR's Forward P/E has been as high as 14.50 and as low as 6.53, with a median of 9.32, all within the past year.
ATKR is also sporting a PEG ratio of 0.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATKR's PEG compares to its industry's average PEG of 0.74. Over the past 52 weeks, ATKR's PEG has been as high as 1.45 and as low as 0.65, with a median of 0.93.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ATKR has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.67.
Finally, we should also recognize that ATKR has a P/CF ratio of 5.16. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.47. Over the past year, ATKR's P/CF has been as high as 10.42 and as low as 4.85, with a median of 6.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Atkore International Group Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATKR feels like a great value stock at the moment.