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Are Investors Undervaluing American Woodmark (AMWD) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.66 right now. For comparison, its industry sports an average P/E of 12.75. Over the last 12 months, AMWD's Forward P/E has been as high as 11.88 and as low as 7.21, with a median of 9.49.
We should also highlight that AMWD has a P/B ratio of 1.37. 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. AMWD's current P/B looks attractive when compared to its industry's average P/B of 2.74. Over the past year, AMWD's P/B has been as high as 1.47 and as low as 0.88, with a median of 1.06.
Finally, investors should note that AMWD has a P/CF ratio of 6.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.13. Within the past 12 months, AMWD's P/CF has been as high as 10.42 and as low as 4.36, with a median of 6.70.
These are only a few of the key metrics included in American Woodmark'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, AMWD looks like an impressive value stock at the moment.
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Are Investors Undervaluing American Woodmark (AMWD) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 American Woodmark (AMWD - Free Report) . AMWD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.66 right now. For comparison, its industry sports an average P/E of 12.75. Over the last 12 months, AMWD's Forward P/E has been as high as 11.88 and as low as 7.21, with a median of 9.49.
We should also highlight that AMWD has a P/B ratio of 1.37. 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. AMWD's current P/B looks attractive when compared to its industry's average P/B of 2.74. Over the past year, AMWD's P/B has been as high as 1.47 and as low as 0.88, with a median of 1.06.
Finally, investors should note that AMWD has a P/CF ratio of 6.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.13. Within the past 12 months, AMWD's P/CF has been as high as 10.42 and as low as 4.36, with a median of 6.70.
These are only a few of the key metrics included in American Woodmark'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, AMWD looks like an impressive value stock at the moment.