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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Aaron's (AAN - Free Report) is a stock many investors are watching right now. AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.94, while its industry has an average P/E of 19.67. Over the past 52 weeks, AAN's Forward P/E has been as high as 17.65 and as low as 3.78, with a median of 13.01.

Another valuation metric that we should highlight is AAN's P/B ratio of 2.50. 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 6.19. AAN's P/B has been as high as 2.81 and as low as 0.58, with a median of 2.10, over the past year.

Finally, investors will want to recognize that AAN has a P/CF ratio of 1.95. 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 6.82. Over the past year, AAN's P/CF has been as high as 2.43 and as low as 0.48, with a median of 1.79.

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


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