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Should Value Investors Buy AAC Technologies (AACAY) Stock?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

AAC Technologies (AACAY - Free Report) is a stock many investors are watching right now. AACAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.61, which compares to its industry's average of 20.62. Over the past year, AACAY's Forward P/E has been as high as 22.32 and as low as 10.10, with a median of 14.48.

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. AACAY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.5.

These are only a few of the key metrics included in AAC Technologies'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, AACAY looks like an impressive value stock at the moment.


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