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Is Acco Brands (ACCO) Stock Undervalued Right Now?

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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 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 stock to keep an eye on is Acco Brands (ACCO - Free Report) . ACCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.18 right now. For comparison, its industry sports an average P/E of 14.37. Over the past year, ACCO's Forward P/E has been as high as 10.22 and as low as 4.83, with a median of 7.62.

We also note that ACCO holds a PEG ratio of 0.72. 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. ACCO's industry currently sports an average PEG of 1.56. Over the past 52 weeks, ACCO's PEG has been as high as 1.02 and as low as 0.48, with a median of 0.76.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ACCO has a P/S ratio of 0.46. This compares to its industry's average P/S of 1.32.

Finally, our model also underscores that ACCO has a P/CF ratio of 5.20. 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. ACCO's current P/CF looks attractive when compared to its industry's average P/CF of 18.02. Over the past 52 weeks, ACCO's P/CF has been as high as 7.28 and as low as 3.05, with a median of 5.34.

Value investors will likely look at more than just these metrics, but the above data helps show that Acco Brands is likely undervalued currently. And when considering the strength of its earnings outlook, ACCO sticks out at as one of the market's strongest value stocks.


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