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Is Afya (AFYA) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Afya (AFYA - Free Report) . AFYA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.79 right now. For comparison, its industry sports an average P/E of 20.49. Over the past year, AFYA's Forward P/E has been as high as 18.02 and as low as 8.83, with a median of 10.98.

AFYA is also sporting a PEG ratio of 0.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AFYA's industry currently sports an average PEG of 1.21. Over the last 12 months, AFYA's PEG has been as high as 1.02 and as low as 0.39, with a median of 0.57.

Another notable valuation metric for AFYA is its P/B ratio of 2.13. Investors use the P/B ratio to look at a stock's market value versus 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 3.45. Within the past 52 weeks, AFYA's P/B has been as high as 2.87 and as low as 1.90, with a median of 2.16.

If you're looking for another solid Schools value stock, take a look at Adtalem Global Education (ATGE - Free Report) . ATGE is a # 2 (Buy) stock with a Value score of A.

Shares of Adtalem Global Education currently holds a Forward P/E ratio of 11.70, and its PEG ratio is 0.78. In comparison, its industry sports average P/E and PEG ratios of 20.49 and 1.21.

ATGE's Forward P/E has been as high as 13.86 and as low as 8.25, with a median of 10.25. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.55, with a median of 0.68.

Furthermore, Adtalem Global Education holds a P/B ratio of 1.91 and its industry's price-to-book ratio is 3.45. ATGE's P/B has been as high as 1.94, as low as 1.06, with a median of 1.43 over the past 12 months.

These are just a handful of the figures considered in Afya and Adtalem Global Education'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 AFYA and ATGE is an impressive value stock right now.


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