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Should Value Investors Buy ABM Industries (ABM) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is ABM Industries (ABM - Free Report) . ABM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.54 right now. For comparison, its industry sports an average P/E of 34.86. Over the past year, ABM's Forward P/E has been as high as 15.83 and as low as 10.26, with a median of 12.70.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ABM has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.87.
Value investors will likely look at more than just these metrics, but the above data helps show that ABM Industries is likely undervalued currently. And when considering the strength of its earnings outlook, ABM sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy ABM Industries (ABM) Stock?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is ABM Industries (ABM - Free Report) . ABM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.54 right now. For comparison, its industry sports an average P/E of 34.86. Over the past year, ABM's Forward P/E has been as high as 15.83 and as low as 10.26, with a median of 12.70.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ABM has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.87.
Value investors will likely look at more than just these metrics, but the above data helps show that ABM Industries is likely undervalued currently. And when considering the strength of its earnings outlook, ABM sticks out at as one of the market's strongest value stocks.