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Is Airbus Group (EADSY) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

Airbus Group (EADSY - Free Report) is a stock many investors are watching right now. EADSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.74. This compares to its industry's average Forward P/E of 20.31. EADSY's Forward P/E has been as high as 37.76 and as low as 15.74, with a median of 26.45, all within the past year.

Investors should also recognize that EADSY has a P/B ratio of 7.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. EADSY's current P/B looks attractive when compared to its industry's average P/B of 14.64. EADSY's P/B has been as high as 12.93 and as low as 7.01, with a median of 9.58, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EADSY has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.49.

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


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