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Are Investors Undervaluing The Andersons (ANDE) Right Now?

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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 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 The Andersons (ANDE - Free Report) . ANDE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.37 right now. For comparison, its industry sports an average P/E of 22.90. Over the last 12 months, ANDE's Forward P/E has been as high as 23.63 and as low as 12.68, with a median of 18.41.

Another notable valuation metric for ANDE is its P/B ratio of 0.81. 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. ANDE's current P/B looks attractive when compared to its industry's average P/B of 1.66. Over the past year, ANDE's P/B has been as high as 1.21 and as low as 0.58, with a median of 0.87.

Finally, we should also recognize that ANDE has a P/CF ratio of 5.22. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.05. Over the past year, ANDE's P/CF has been as high as 8.28 and as low as 3.72, with a median of 6.12.

Value investors will likely look at more than just these metrics, but the above data helps show that The Andersons is likely undervalued currently. And when considering the strength of its earnings outlook, ANDE sticks out at as one of the market's strongest value stocks.


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