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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Atkore International Group Inc. (ATKR - Free Report) . ATKR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.77 right now. For comparison, its industry sports an average P/E of 7.62. Over the last 12 months, ATKR's Forward P/E has been as high as 10.11 and as low as 5.72, with a median of 8.14.
ATKR is also sporting a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ATKR's PEG compares to its industry's average PEG of 0.76. Over the last 12 months, ATKR's PEG has been as high as 1.01 and as low as 0.60, with a median of 0.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ATKR has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.73.
Finally, investors will want to recognize that ATKR has a P/CF ratio of 5.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.69. Over the past year, ATKR's P/CF has been as high as 7.19 and as low as 4.12, with a median of 5.56.
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.