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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.23 right now. For comparison, its industry sports an average P/E of 14.83. Over the last 12 months, AHEXY's Forward P/E has been as high as 12.18 and as low as 6.87, with a median of 9.54.
Investors will also notice that AHEXY has a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AHEXY's industry currently sports an average PEG of 1.65. Over the last 12 months, AHEXY's PEG has been as high as 4.56 and as low as 0.67, with a median of 1.01.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. AHEXY has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHEXY feels like a great value stock at the moment.
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Should Value Investors Buy Adecco (AHEXY) Stock?
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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.23 right now. For comparison, its industry sports an average P/E of 14.83. Over the last 12 months, AHEXY's Forward P/E has been as high as 12.18 and as low as 6.87, with a median of 9.54.
Investors will also notice that AHEXY has a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AHEXY's industry currently sports an average PEG of 1.65. Over the last 12 months, AHEXY's PEG has been as high as 4.56 and as low as 0.67, with a median of 1.01.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. AHEXY has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHEXY feels like a great value stock at the moment.