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Is Atkore International Group Inc. (ATKR) Stock Undervalued Right Now?

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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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Atkore International Group Inc. (ATKR - Free Report) . ATKR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that ATKR has a PEG ratio of 0.65. 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. ATKR's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, ATKR's PEG has been as high as 0.95 and as low as 0.60, with a median of 0.70.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ATKR has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.78.

These are just a handful of the figures considered in Atkore International Group Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ATKR is an impressive value stock right now.


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