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Should Value Investors Buy Wesco Aircraft Holdings (WAIR) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Wesco Aircraft Holdings . WAIR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 16.51. Over the last 12 months, WAIR's Forward P/E has been as high as 15.53 and as low as 8.46, with a median of 10.71.

WAIR is also sporting a PEG ratio of 0.84. 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. WAIR's industry currently sports an average PEG of 1.52. Over the last 12 months, WAIR's PEG has been as high as 1.29 and as low as 0.70, with a median of 0.89.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WAIR has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.02.

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

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