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Are Investors Undervaluing These Industrial Products Stocks 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is AGCO (AGCO - Free Report) . AGCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 14.99. Over the past year, AGCO's Forward P/E has been as high as 20.46 and as low as -1,270.93, with a median of 13.71.
Investors should also note that AGCO holds a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AGCO's industry has an average PEG of 1.19 right now. AGCO's PEG has been as high as 1.38 and as low as -66.66, with a median of 0.83, all within the past year.
Investors should also recognize that AGCO has a P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AGCO's current P/B looks attractive when compared to its industry's average P/B of 5.34. Over the past year, AGCO's P/B has been as high as 3.77 and as low as 2.55, with a median of 3.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGCO has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.36.
Finally, investors will want to recognize that AGCO has a P/CF ratio of 8.60. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.30. Over the past 52 weeks, AGCO's P/CF has been as high as 15.56 and as low as 7.99, with a median of 10.19.
Titan International may be another strong Manufacturing - Farm Equipment stock to add to your shortlist. TWI is a # 2 (Buy) stock with a Value grade of A.
Titan International is currently trading with a Forward P/E ratio of 10.45 while its PEG ratio sits at -6.40. Both of the company's metrics compare favorably to its industry's average P/E of 14.99 and average PEG ratio of 1.19.
Furthermore, Titan International holds a P/B ratio of 3.51 and its industry's price-to-book ratio is 5.34. TWI's P/B has been as high as 4.28, as low as 2.27, with a median of 2.91 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AGCO and Titan International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGCO and TWI feels like a great value stock at the moment.
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Are Investors Undervaluing These Industrial Products Stocks Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is AGCO (AGCO - Free Report) . AGCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 14.99. Over the past year, AGCO's Forward P/E has been as high as 20.46 and as low as -1,270.93, with a median of 13.71.
Investors should also note that AGCO holds a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AGCO's industry has an average PEG of 1.19 right now. AGCO's PEG has been as high as 1.38 and as low as -66.66, with a median of 0.83, all within the past year.
Investors should also recognize that AGCO has a P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AGCO's current P/B looks attractive when compared to its industry's average P/B of 5.34. Over the past year, AGCO's P/B has been as high as 3.77 and as low as 2.55, with a median of 3.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGCO has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.36.
Finally, investors will want to recognize that AGCO has a P/CF ratio of 8.60. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.30. Over the past 52 weeks, AGCO's P/CF has been as high as 15.56 and as low as 7.99, with a median of 10.19.
Titan International may be another strong Manufacturing - Farm Equipment stock to add to your shortlist. TWI is a # 2 (Buy) stock with a Value grade of A.
Titan International is currently trading with a Forward P/E ratio of 10.45 while its PEG ratio sits at -6.40. Both of the company's metrics compare favorably to its industry's average P/E of 14.99 and average PEG ratio of 1.19.
Furthermore, Titan International holds a P/B ratio of 3.51 and its industry's price-to-book ratio is 5.34. TWI's P/B has been as high as 4.28, as low as 2.27, with a median of 2.91 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AGCO and Titan International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGCO and TWI feels like a great value stock at the moment.