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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.
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.
AES (AES - Free Report) is a stock many investors are watching right now. AES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 15.34. AES's Forward P/E has been as high as 11.23 and as low as 6.60, with a median of 8.84, all within the past year.
Investors should also note that AES holds a PEG ratio of 1.06. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AES's industry has an average PEG of 2.08 right now. Over the past 52 weeks, AES's PEG has been as high as 1.39 and as low as 0.72, with a median of 0.95.
Another notable valuation metric for AES is its P/B ratio of 1.83. 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 stock's P/B looks solid versus its industry's average P/B of 2.43. Within the past 52 weeks, AES's P/B has been as high as 3.13 and as low as 1.65, with a median of 2.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AES has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.04.
Finally, we should also recognize that AES has a P/CF ratio of 6.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AES's current P/CF looks attractive when compared to its industry's average P/CF of 12.19. AES's P/CF has been as high as 26.42 and as low as 5.95, with a median of 8.37, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AES is likely undervalued currently. And when considering the strength of its earnings outlook, AES sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy AES (AES) 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.
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.
AES (AES - Free Report) is a stock many investors are watching right now. AES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 15.34. AES's Forward P/E has been as high as 11.23 and as low as 6.60, with a median of 8.84, all within the past year.
Investors should also note that AES holds a PEG ratio of 1.06. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AES's industry has an average PEG of 2.08 right now. Over the past 52 weeks, AES's PEG has been as high as 1.39 and as low as 0.72, with a median of 0.95.
Another notable valuation metric for AES is its P/B ratio of 1.83. 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 stock's P/B looks solid versus its industry's average P/B of 2.43. Within the past 52 weeks, AES's P/B has been as high as 3.13 and as low as 1.65, with a median of 2.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AES has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.04.
Finally, we should also recognize that AES has a P/CF ratio of 6.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AES's current P/CF looks attractive when compared to its industry's average P/CF of 12.19. AES's P/CF has been as high as 26.42 and as low as 5.95, with a median of 8.37, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AES is likely undervalued currently. And when considering the strength of its earnings outlook, AES sticks out at as one of the market's strongest value stocks.