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.
Are Investors Undervaluing Legato Merger (ASTL) Right Now?
Read MoreHide Full Article
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.
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 stock to keep an eye on is Legato Merger (ASTL - Free Report) . ASTL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is ASTL's P/B ratio of 0.56. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.39. Within the past 52 weeks, ASTL's P/B has been as high as 1.38 and as low as 0.33, with a median of 0.65.
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. ASTL has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.28.
If you're looking for another solid Steel - Producers value stock, take a look at Commercial Metals (CMC - Free Report) . CMC is a # 1 (Strong Buy) stock with a Value score of A.
Commercial Metals sports a P/B ratio of 1.81 as well; this compares to its industry's price-to-book ratio of 1.39. In the past 52 weeks, CMC's P/B has been as high as 1.95, as low as 1.26, with a median of 1.66.
These are just a handful of the figures considered in Legato Merger and Commercial Metals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASTL and CMC is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Legato Merger (ASTL) 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.
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 stock to keep an eye on is Legato Merger (ASTL - Free Report) . ASTL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is ASTL's P/B ratio of 0.56. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.39. Within the past 52 weeks, ASTL's P/B has been as high as 1.38 and as low as 0.33, with a median of 0.65.
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. ASTL has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.28.
If you're looking for another solid Steel - Producers value stock, take a look at Commercial Metals (CMC - Free Report) . CMC is a # 1 (Strong Buy) stock with a Value score of A.
Commercial Metals sports a P/B ratio of 1.81 as well; this compares to its industry's price-to-book ratio of 1.39. In the past 52 weeks, CMC's P/B has been as high as 1.95, as low as 1.26, with a median of 1.66.
These are just a handful of the figures considered in Legato Merger and Commercial Metals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASTL and CMC is an impressive value stock right now.