We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 value investors might notice is AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.14, while its industry has an average P/E of 23.99. Over the past 52 weeks, AZZ's Forward P/E has been as high as 18.60 and as low as 12.87, with a median of 15.20.
Investors will also notice that AZZ has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZZ's PEG compares to its industry's average PEG of 2.33. AZZ's PEG has been as high as 1.27 and as low as 0.92, with a median of 1.07, all within the past year.
Another valuation metric that we should highlight is AZZ's P/B ratio of 2.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.11. Over the past 12 months, AZZ's P/B has been as high as 2.87 and as low as 2.16, with a median of 2.47.
Value investors also use the P/S ratio. The P/S ratio 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. AZZ has a P/S ratio of 2.05. This compares to its industry's average P/S of 2.3.
Finally, investors should note that AZZ has a P/CF ratio of 9.06. 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. AZZ's current P/CF looks attractive when compared to its industry's average P/CF of 22.37. AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35, all within the past year.
These are only a few of the key metrics included in AZZ'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, AZZ 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:
Image: Bigstock
Should Value Investors Buy AZZ (AZZ) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 value investors might notice is AZZ (AZZ - Free Report) . AZZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.14, while its industry has an average P/E of 23.99. Over the past 52 weeks, AZZ's Forward P/E has been as high as 18.60 and as low as 12.87, with a median of 15.20.
Investors will also notice that AZZ has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZZ's PEG compares to its industry's average PEG of 2.33. AZZ's PEG has been as high as 1.27 and as low as 0.92, with a median of 1.07, all within the past year.
Another valuation metric that we should highlight is AZZ's P/B ratio of 2.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.11. Over the past 12 months, AZZ's P/B has been as high as 2.87 and as low as 2.16, with a median of 2.47.
Value investors also use the P/S ratio. The P/S ratio 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. AZZ has a P/S ratio of 2.05. This compares to its industry's average P/S of 2.3.
Finally, investors should note that AZZ has a P/CF ratio of 9.06. 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. AZZ's current P/CF looks attractive when compared to its industry's average P/CF of 22.37. AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35, all within the past year.
These are only a few of the key metrics included in AZZ'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, AZZ looks like an impressive value stock at the moment.