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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Arcosa (ACA - Free Report) . ACA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that ACA has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ACA's current P/B looks attractive when compared to its industry's average P/B of 2.15. Over the past 12 months, ACA's P/B has been as high as 1.10 and as low as 0.80, with a median of 0.93.
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. ACA has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.09.
Finally, investors should note that ACA has a P/CF ratio of 9.87. 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. ACA's current P/CF looks attractive when compared to its industry's average P/CF of 13.86. ACA's P/CF has been as high as 12.39 and as low as 8.99, with a median of 10.21, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arcosa is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACA feels like a great value stock at the moment.
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Is Arcosa (ACA) Stock Undervalued Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Arcosa (ACA - Free Report) . ACA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that ACA has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ACA's current P/B looks attractive when compared to its industry's average P/B of 2.15. Over the past 12 months, ACA's P/B has been as high as 1.10 and as low as 0.80, with a median of 0.93.
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. ACA has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.09.
Finally, investors should note that ACA has a P/CF ratio of 9.87. 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. ACA's current P/CF looks attractive when compared to its industry's average P/CF of 13.86. ACA's P/CF has been as high as 12.39 and as low as 8.99, with a median of 10.21, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arcosa is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACA feels like a great value stock at the moment.