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Are Investors Undervaluing Mistras Group (MG) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 Mistras Group (MG - Free Report) . MG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.87 right now. For comparison, its industry sports an average P/E of 23.62. Over the past year, MG's Forward P/E has been as high as 14.12 and as low as 9.71, with a median of 11.57.
Another notable valuation metric for MG is its P/B ratio of 1.79. 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. This stock's P/B looks solid versus its industry's average P/B of 4.53. Over the past 12 months, MG's P/B has been as high as 1.94 and as low as 0.81, with a median of 1.36.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MG has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that MG has a P/CF ratio of 12.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.48. Over the past year, MG's P/CF has been as high as 17.67 and as low as 4.62, with a median of 11.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mistras Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MG feels like a great value stock at the moment.
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Are Investors Undervaluing Mistras Group (MG) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 Mistras Group (MG - Free Report) . MG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.87 right now. For comparison, its industry sports an average P/E of 23.62. Over the past year, MG's Forward P/E has been as high as 14.12 and as low as 9.71, with a median of 11.57.
Another notable valuation metric for MG is its P/B ratio of 1.79. 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. This stock's P/B looks solid versus its industry's average P/B of 4.53. Over the past 12 months, MG's P/B has been as high as 1.94 and as low as 0.81, with a median of 1.36.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MG has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that MG has a P/CF ratio of 12.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.48. Over the past year, MG's P/CF has been as high as 17.67 and as low as 4.62, with a median of 11.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mistras Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MG feels like a great value stock at the moment.