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Should Value Investors Buy Grupo Aval Acciones y Valores (AVAL) Stock?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Grupo Aval Acciones y Valores (AVAL - Free Report) . AVAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 16.83. AVAL's Forward P/E has been as high as 11.46 and as low as 5.50, with a median of 6.82, all within the past year.

Finally, we should also recognize that AVAL has a P/CF ratio of 14.42. 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. AVAL's current P/CF looks attractive when compared to its industry's average P/CF of 30.08. Within the past 12 months, AVAL's P/CF has been as high as 15.84 and as low as 6.46, with a median of 8.61.

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


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