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.
Is AgroFresh Solutions (AGFS) a Great Value Stock Right Now?
Read MoreHide Full Article
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 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 AgroFresh Solutions . AGFS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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. AGFS has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.56.
Finally, investors will want to recognize that AGFS has a P/CF ratio of 2.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.06. Within the past 12 months, AGFS's P/CF has been as high as 15.57 and as low as 1.95, with a median of 2.56.
DAQO New Energy (DQ - Free Report) may be another strong Chemical - Specialty stock to add to your shortlist. DQ is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, DAQO New Energy holds a P/B ratio of 1.48 and its industry's price-to-book ratio is 3.54. DQ's P/B has been as high as 5.10, as low as 0.84, with a median of 1.37 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 AgroFresh Solutions and DAQO New Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGFS and DQ feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is AgroFresh Solutions (AGFS) 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 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 AgroFresh Solutions . AGFS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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. AGFS has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.56.
Finally, investors will want to recognize that AGFS has a P/CF ratio of 2.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.06. Within the past 12 months, AGFS's P/CF has been as high as 15.57 and as low as 1.95, with a median of 2.56.
DAQO New Energy (DQ - Free Report) may be another strong Chemical - Specialty stock to add to your shortlist. DQ is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, DAQO New Energy holds a P/B ratio of 1.48 and its industry's price-to-book ratio is 3.54. DQ's P/B has been as high as 5.10, as low as 0.84, with a median of 1.37 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 AgroFresh Solutions and DAQO New Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGFS and DQ feels like a great value stock at the moment.