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Should Value Investors Buy Andritz (ADRZY) Stock?

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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.

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.

Andritz (ADRZY - Free Report) is a stock many investors are watching right now. ADRZY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.65, which compares to its industry's average of 27.39. Over the past year, ADRZY's Forward P/E has been as high as 12.56 and as low as 7.77, with a median of 10.98.

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. ADRZY has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.3.

Kion Group (KIGRY - Free Report) may be another strong Industrial Services stock to add to your shortlist. KIGRY is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Kion Group sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 17.45. In the past 52 weeks, KIGRY's P/B has been as high as 1.41, as low as 0.62, with a median of 0.95.

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


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