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Should Value Investors Buy Angi (ANGI) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 stock to keep an eye on is Angi (ANGI - Free Report) . ANGI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ANGI has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.23.

Finally, we should also recognize that ANGI has a P/CF ratio of 10.98. 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 stock's P/CF looks attractive against its industry's average P/CF of 23.57. Over the past 52 weeks, ANGI's P/CF has been as high as 25.33 and as low as 7.82, with a median of 16.38.

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


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