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Are Investors Undervaluing American Outdoor Brands (AOBC) 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 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 company value investors might notice is American Outdoor Brands . AOBC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AOBC has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.04.

Finally, our model also underscores that AOBC has a P/CF ratio of 8.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.70. Over the past 52 weeks, AOBC's P/CF has been as high as 8.69 and as low as 4.14, with a median of 6.36.

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

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