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Are Investors Undervaluing ABM Industries (ABM) Right Now?

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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.

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 ABM Industries (ABM - Free Report) . ABM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.06, while its industry has an average P/E of 44.98. Over the past year, ABM's Forward P/E has been as high as 22.74 and as low as 9.74, with a median of 18.02.

Finally, investors should note that ABM has a P/CF ratio of 29.91. 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. ABM's current P/CF looks attractive when compared to its industry's average P/CF of 41.80. Over the past 52 weeks, ABM's P/CF has been as high as 33.22 and as low as 5.55, with a median of 11.62.

These are only a few of the key metrics included in ABM Industries'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, ABM looks like an impressive value stock at the moment.


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