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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
AZZ (AZZ - Free Report) is a stock many investors are watching right now. AZZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 17.14. This compares to its industry's average Forward P/E of 23.99. Over the past year, AZZ's Forward P/E has been as high as 18.60 and as low as 12.87, with a median of 15.20.
AZZ is also sporting 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 industry currently sports an 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 notable valuation metric for AZZ is its P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against 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. This is a preferred metric because revenue can't really be manipulated, so sales are often 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 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. AZZ's P/CF compares to its industry's average P/CF of 22.37. Within the past 12 months, AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35.
These are just a handful of the figures considered in AZZ's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AZZ is an impressive value stock right now.
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Should Value Investors Buy AZZ (AZZ) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
AZZ (AZZ - Free Report) is a stock many investors are watching right now. AZZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 17.14. This compares to its industry's average Forward P/E of 23.99. Over the past year, AZZ's Forward P/E has been as high as 18.60 and as low as 12.87, with a median of 15.20.
AZZ is also sporting 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 industry currently sports an 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 notable valuation metric for AZZ is its P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against 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. This is a preferred metric because revenue can't really be manipulated, so sales are often 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 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. AZZ's P/CF compares to its industry's average P/CF of 22.37. Within the past 12 months, AZZ's P/CF has been as high as 13.51 and as low as 7.42, with a median of 11.35.
These are just a handful of the figures considered in AZZ's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AZZ is an impressive value stock right now.