Back to top

Image: Bigstock

Is ABM Industries (ABM) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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.

ABM Industries (ABM - Free Report) is a stock many investors are watching right now. ABM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 22.30. This compares to its industry's average Forward P/E of 33.30. Over the past 52 weeks, ABM's Forward P/E has been as high as 22.74 and as low as 9.74, with a median of 18.22.

Finally, our model also underscores that ABM has a P/CF ratio of 32.63. 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 stock's P/CF looks attractive against its industry's average P/CF of 42.68. Over the past year, ABM's P/CF has been as high as 33.26 and as low as 5.55, with a median of 11.60.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ABM Industries Incorporated (ABM) - free report >>

Published in