We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 AECOM (ACM - Free Report) . ACM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that ACM has a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACM's industry currently sports an average PEG of 1.17. ACM's PEG has been as high as 1.20 and as low as 0.76, with a median of 0.90, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ACM has a P/S ratio of 0.8. This compares to its industry's average P/S of 0.91.
Finally, our model also underscores that ACM has a P/CF ratio of 30.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ACM's current P/CF looks attractive when compared to its industry's average P/CF of 30.79. Over the past year, ACM's P/CF has been as high as 552.20 and as low as 26.11, with a median of 84.31.
Value investors will likely look at more than just these metrics, but the above data helps show that AECOM is likely undervalued currently. And when considering the strength of its earnings outlook, ACM sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing AECOM (ACM) Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 AECOM (ACM - Free Report) . ACM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that ACM has a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACM's industry currently sports an average PEG of 1.17. ACM's PEG has been as high as 1.20 and as low as 0.76, with a median of 0.90, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ACM has a P/S ratio of 0.8. This compares to its industry's average P/S of 0.91.
Finally, our model also underscores that ACM has a P/CF ratio of 30.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ACM's current P/CF looks attractive when compared to its industry's average P/CF of 30.79. Over the past year, ACM's P/CF has been as high as 552.20 and as low as 26.11, with a median of 84.31.
Value investors will likely look at more than just these metrics, but the above data helps show that AECOM is likely undervalued currently. And when considering the strength of its earnings outlook, ACM sticks out at as one of the market's strongest value stocks.