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Should Value Investors Buy American Woodmark (AMWD) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 American Woodmark (AMWD - Free Report) . AMWD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.49, while its industry has an average P/E of 14.59. AMWD's Forward P/E has been as high as 13.49 and as low as 7.01, with a median of 11.05, all within the past year.

Another notable valuation metric for AMWD is its P/B ratio of 2.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.08. Within the past 52 weeks, AMWD's P/B has been as high as 2.72 and as low as 1.51, with a median of 2.27.

Finally, our model also underscores that AMWD has a P/CF ratio of 9.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.68. AMWD's P/CF has been as high as 9.14 and as low as 6.40, with a median of 7.93, all within the past year.

These are only a few of the key metrics included in American Woodmark's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AMWD looks like an impressive value stock at the moment.


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