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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is AAR (AIR - Free Report) . AIR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 20.82. Over the past 52 weeks, AIR's Forward P/E has been as high as 18.29 and as low as 11.02, with a median of 15.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AIR has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.64.
Value investors will likely look at more than just these metrics, but the above data helps show that AAR is likely undervalued currently. And when considering the strength of its earnings outlook, AIR sticks out at as one of the market's strongest value stocks.
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Is AAR (AIR) a Great Value Stock Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is AAR (AIR - Free Report) . AIR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 20.82. Over the past 52 weeks, AIR's Forward P/E has been as high as 18.29 and as low as 11.02, with a median of 15.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AIR has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.64.
Value investors will likely look at more than just these metrics, but the above data helps show that AAR is likely undervalued currently. And when considering the strength of its earnings outlook, AIR sticks out at as one of the market's strongest value stocks.