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Is Angi (ANGI) Stock Undervalued Right Now?

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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.

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.

One company value investors might notice is Angi (ANGI - Free Report) . ANGI is currently sporting a Zacks Rank of #2 (Buy), as well as 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ANGI has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.1.

Finally, investors will want to recognize that ANGI has a P/CF ratio of 10.30. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 36.33. ANGI's P/CF has been as high as 25.33 and as low as 7.82, with a median of 15.66, all within the past year.

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


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