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Is Aaron's (AAN) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

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 stock to keep an eye on is Aaron's (AAN - Free Report) . AAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for AAN is its P/B ratio of 2.36. 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 3.38. Over the past year, AAN's P/B has been as high as 2.44 and as low as 1.54, with a median of 1.99.

Finally, investors should note that AAN has a P/CF ratio of 2.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.09. AAN's P/CF has been as high as 2.13 and as low as 1.34, with a median of 1.77, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Aaron's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAN feels like a great value stock at the moment.


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