Back to top

Image: Bigstock

Is AAR (AIR) a Great Value Stock Right Now?

Read MoreHide Full Article

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 company to watch right now is AAR (AIR - Free Report) . AIR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.37 right now. For comparison, its industry sports an average P/E of 17.39. Over the past 52 weeks, AIR's Forward P/E has been as high as 17.76 and as low as 11.37, with a median of 15.09.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AIR has a P/S ratio of 0.56. This compares to its industry's average P/S of 1.6.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIR feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AAR Corp. (AIR) - free report >>

Published in