Back to top

Image: Bigstock

Are Investors Undervaluing The Andersons (ANDE) Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 The Andersons (ANDE - Free Report) . ANDE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ANDE has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.27.

Finally, investors should note that ANDE has a P/CF ratio of 6.17. 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. ANDE's current P/CF looks attractive when compared to its industry's average P/CF of 6.64. Over the past 52 weeks, ANDE's P/CF has been as high as 8.71 and as low as 5.59, with a median of 6.94.

These are only a few of the key metrics included in The Andersons's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANDE looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


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


The Andersons, Inc. (ANDE) - free report >>

Published in