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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Avnet (AVT - Free Report) . AVT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that AVT has a P/B ratio of 0.74. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.87. Within the past 52 weeks, AVT's P/B has been as high as 1.09 and as low as 0.50, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVT has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.26.
Finally, investors should note that AVT has a P/CF ratio of 7.72. 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. AVT's current P/CF looks attractive when compared to its industry's average P/CF of 8.80. Over the past 52 weeks, AVT's P/CF has been as high as 9.57 and as low as 4.43, with a median of 7.63.
These are only a few of the key metrics included in Avnet'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, AVT looks like an impressive value stock at the moment.
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Is Avnet (AVT) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Avnet (AVT - Free Report) . AVT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that AVT has a P/B ratio of 0.74. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.87. Within the past 52 weeks, AVT's P/B has been as high as 1.09 and as low as 0.50, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVT has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.26.
Finally, investors should note that AVT has a P/CF ratio of 7.72. 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. AVT's current P/CF looks attractive when compared to its industry's average P/CF of 8.80. Over the past 52 weeks, AVT's P/CF has been as high as 9.57 and as low as 4.43, with a median of 7.63.
These are only a few of the key metrics included in Avnet'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, AVT looks like an impressive value stock at the moment.