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Is AdvanSix (ASIX) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is AdvanSix (ASIX - Free Report) . ASIX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.79. This compares to its industry's average Forward P/E of 23.01. Over the past 52 weeks, ASIX's Forward P/E has been as high as 16.05 and as low as 6.08, with a median of 9.34.

Finally, we should also recognize that ASIX has a P/CF ratio of 9.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.57. Within the past 12 months, ASIX's P/CF has been as high as 10.29 and as low as 3.95, with a median of 5.58.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AdvanSix is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASIX feels like a great value stock at the moment.


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