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Is American Public Education (APEI) Stock Undervalued Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is American Public Education (APEI - Free Report) . APEI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for APEI is its P/B ratio of 1.31. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.91. Within the past 52 weeks, APEI's P/B has been as high as 1.31 and as low as 0.24, with a median of 0.42.

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. APEI has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.29.

Investors could also keep in mind Laureate Education (LAUR - Free Report) , an Schools stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Laureate Education also has a P/B ratio of 2.76 compared to its industry's price-to-book ratio of 3.91. Over the past year, its P/B ratio has been as high as 2.76, as low as 1.92, with a median of 2.25.

These figures are just a handful of the metrics value investors tend to look at, but they help show that American Public Education and Laureate Education are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APEI and LAUR feels like a great value stock at the moment.


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